value 1000 points Required Use the following information to

value: 10.00 points Required Use the following information to prepare a multistep income statement and a classifed balance sheet Eller Equipment Co. for 2016. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.) (Amounts to be deducted should be indicated with a minus sign.) 47,100 5,100 12,000 51,000 102,000 24,000 81,000 33,400 132,000 41,000 22,000 54,000 33,000 581,000 94,000 1,600 Beginning retained earnings Warranties payable (short term) Gain on sale of equipment Operating expenses Cash flow from investing activities $108,000 Salaries expense Common stock 96,000 18,500 20,000 52,000 Notes receivable (short term) Allowance for doubtful accounts Accumulated depreciation Notes payable (long term) Salvage value of building Interest payable (short term) Uncollectible accounts expense Supplies Equipment Interest revenue Sales revenue Dividends Warranty expense Interest receivable (short term 146,000 Prepaid rent 16,000 Land 7,000 Cash 5.100 Accounts payable 4,800 31,000 Inventory 216,400 Interest expense Salaries payable Unearned revenue Cost of goods sold 912,000 21,000 7,800 Accounts receivable 2,200 Depreciation expense

Solution

INCOME STATEMENT Sales revenue 912000 Cost of goods sold 581000 Gross margin 331000 Operating expenses Salaries expense 108000 Operating expenses 51000 Warranty expense 7800 Uncollectible expenses 31000 Depreciation expense 1600 Total operating expenses 199400 Operating income 131600 Non-Operating items: Interest revenue 4800 Gain on sale of equipment 12000 Interest expense -22000 -5200 Net income 126400 BALANCE SHEET ASSETS Current Assets: Cash 33400 Accounts receivable 94000 Less: Allowance for doubtful accounts 20000 74000 Inventory 132000 Interest receivable 2200 Prepaid rent 24000 Supplies 5100 Notes receivable 18500 Total current assets 289200 Property, Pland and Equipment: Land 81000 Equipment 216400 297400 Accumulated depreciation 52000 Total property, plant and equipment 245400 TOTAL ASSETS 534600 LIABILITIES AND STOCKHOLDERS\' EQUITY Curren liabilities: Accounts payable 41000 Salaries payable 54000 Interest payable 7000 Warranties payable 5100 Unearned revenue 33000 Total current liabilities 140100 Notes payable-Long term 146000 Total liabilities 286100 Stock holders equity: Common stock 96000 Retained earnings 152500 Total stockholders\' equity 248500 TOTAL LIABILITIES AND STOCKHOLDERS\' EQUITY 534600