The following are the information of Chun Equipment Co. for Year 2. (Hint: Some of the items will…

The following are the information of Chun Equipment Co. for Year 2. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.) Salaries expense $ 122,500 Interest receivable (short term) $ 550 Common stock 50,500 Beginning retained earnings 36,470 Notes receivable (short term) 17,910 Operating expenses 94,650 Allowance for doubtful accounts 5,440 Cash flow from investing activities (96,880 ) Accumulated depreciation 40,200 Prepaid rent 13,660 Notes payable (long term) 123,670 Land 46,100 Salvage value of equipment 6,920 Cash 25,530 Interest payable (short term) 3,280 Inventory 161,600 Uncollectible accounts expense 14,730 Accounts payable 64,970 Supplies 3,170 Interest expense 31,390 Office equipment 74,870 Salaries payable 12,240 Interest revenue 6,170 Unearned revenue 56,090 Sales revenue 524,330 Cost of goods sold 187,710 Dividends 11,300 Accounts receivable 112,620 Rent expense 5,070 Required Prepare a multistep income statement and balance sheet for Chun Equipment Co. for Year 2.

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