These financial statement items are for Norsted Company at year-end, July 31, 2020.

Instructions

a. Prepare an income statement and a retained earnings statement for the year.

b. Prepare a classified balance sheet at July 31.

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Salaries and wages $ Notes payable (long-term) 2,080 $ 1,800 14,200 payable Salaries and wages 51,700 Cash expense Utilities expense Equipment 22,600 Accounts receivable 30,400 Accumulated depreciation- 9,780 6,000 Accounts payable Service revenue Rent revenue equipment 4,100 Dividends 62,000 Depreciation expense 8,500 Retained earnings (beginning of the 21,200 3,000 4,000 year) Common stock 30,000