These financial statement items are for Major Company at year end, July 31, 2012.
|
Salaries and wages payable |
$ 2,080 |
Notes payable (long term) |
$ 1,800 |
|
Salaries and wages expense |
51,700 |
Cash |
14,200 |
|
Utilities expense |
22,600 |
Accounts receivable |
9,780 |
|
Equipment |
30,400 |
Accumulated depreciation—equip. |
6,000 |
|
Accounts payable |
4,100 |
Owner’s drawings |
3,000 |
|
Service revenue |
62,000 |
Depreciation expense |
4,000 |
|
Rent revenue |
8,500 |
Owner’s Capital (beginning |
51,200 |
|
of the year) |
Instructions
(a) Prepare an income statement and an owner’s equity statement for the year. The owner did not make any new investments during the year.
(b) Prepare a classified balance sheet at July 31.