1. Prepare an income statement for the year.

2. Prepare statement of changes in equity for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 3. Prepare a statement of financial position for the year. (List Current Assets in order of liquidity.)

Exercise 2-5 (al-a3) These financial statement items are for Oriole Corporation at year end, July 31, 2018: Operating expenses $32,500 Interest payable Salaries expense 46,200 Supplies expense Unearned revenue 12,000 Dividends declared Utilities expense 3,200 Depreciation expense Equipment 58,000 Retained earnings, Aug. 1, 2017 Accounts payable 4,020 Rent expense Service revenue 116,100 Income tax expense Rent revenue 19,000 Supplies Common shares 26,000 Held for trading investments Cash 5,460 Bank loan payable (due Dec. 31, 2018) Accounts receivable 21,600 Interest expense Accumulated depreciation-equipment 6,700 $ 1,700 1,500 16,500 3,700 22,940 12,000 5,300 1,700 23,500 24,800 2,100 Additional information: Oriole started the year with $20,000 of common shares and issued additional shares for $6,000 during the year