Acc201 Survery of Accounting: P5-24 Use the following information to prepare a (Reza Equipment)

Acc201 Survery of Accounting 
Problem 5-24 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. (Hint: Some of the items will not appear on either statement and ending retained earnings must be calculated.) 
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 4,000                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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