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Multistep income statement and balance sheet
Required
Use the following information to prepare a multistep income statement and a classified balance sheet for Reza Equipment Co. for 2010.
Salaries expense
$ 96,000
Interest receivable (short term)
$ 500
Common stock
40,000
Beginning retained earnings
18,100
Notes receivable (short term)
12,000
Operating expenses
70,000
Allowance for doubtful accounts
4,000
Cash flow from investing activities
80,000
Accumulated depreciation
30,000
Prepaid rent
9,600
Notes payable (long term)
103,600
Land
36,000
Salvage value of building
Cash
17,800
Interest payable (short term)
1,800
Inventory
122,800
Uncollectible accounts expense
10,800
Accounts payable
46,000
Supplies
1,600
Interest expense
24,000
Equipment
60,000
Salaries payable
9,200
Interest revenue
4,200
Unearned revenue
52,600
Sales revenue
396,000
Cost of goods sold
143,000
Dividends
8,000
Accounts receivable
90,000
Rent expense
3,400
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