I only need an answer to the Accrual Accounting.

CASE 1.1 Dublin Small Animal Clinic, Inc. Rachel Saunders graduated from The Ohio State University College of Veterinary Medicine in 2001. She then worked as a staff veterinarian in a medium-size veteri- nary practice in Worthington. Ohio, until 2009, when she opened her own practice in nearby Dublin. Ohio. Dr. Saunders established Dublin Small Animal Clinic (DSAC) on July l, 2009, by purchasing all of its common stock for $125,000. That same day DSAC paid $2,500 to an attorney who prepared DSAC's legal documents and filed incorporation docu- ments with the State of Ohio; paid $90,000 for medical instruments, furniture, and equipment: and signed a three-year lease on office space for $5,000 per month, pay- able the first day of each month. and paid that amount. During July 2009. DSAC received $18,500 from clients for office visits, surgery, med- ical supplies, and drugs. During July, DSAC also paid for drugs and medical supplies, $500 for office supplies. and $13,750 for wages and benefits (which included $6,500 for Dr. Saunders). At the end of July, DSAC had negligible drugs, medical sup- plies, or office supplies in inventory. Required l. Record the above activity, and then prepare an income statement for July 2009 and a balance sheet as of July 31, 2010. 2, Was DSAC successful during its first month of operation? Explain. Accrual Accounting In mid-August Dr. Saunders asked an accountant to evaluate her financial statements. The accountant learned that DSAC had billed clients an additional $6,500 for care delivered in July but did not receive payments until August. DSAC also purchased and used an additional $500 of drugs and medical supplies in July but did not pay for them until August. The accountant estimated the instruments, furniture. and equipment would last about five years and decided to depreciate those assets over a GO-month period using straight-line depreciation with no salvage value. Required 1. Record the additional activity. Prepare a revised income statement for July 2009 and a revised balance sheet as of July 31, 2009. 2. Reevaluate whether DSAC was successful during its first month of operation,