E1-36B. (Learning Objective 4: Preparing an Income Statement and a Statement of Changes in Equity) Assume Express Copy Center ended the month of July 20X7 with this data:

Requirement 1. Prepare the Income Statement and the Statement of Changes in Equity of Express Copy Center, for the month ended July 31, 20X7.

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Payments of cash: Acquisition of equipment....... Dividends........................... Retained earnings June 30, 20X7. 411,000 3,100 Cash balance, June 30, 20X7..... Cash balance, July 31, 20X7...... 0 Cash receipts: Issuance of shares 0 9,500 Retained carnings to owners. 54,000 July 31, 20X7 _ 2 Rent expense. 5,750 Utilities expense 11,000 Share capital.. 54,000 Adjustments to reconcile Equipment.... 411,000 net income to net cash Office supplies... 14,200 provided by operations...... 2,800 Accounts payable. 17,000 Salary expense....... 161,800 Service revenue.... 544,450