P55A Buono Adventures, which uses the perpetual inventory system, has the following account balances (in alphabetical order) on July 31, 2020:

Accounts Payable.......................................................................$21,600Accounts Receivable..................................................................23,200Accumulated AmortizationEquipment..............................64,600Cash..............................................................................................8,400Cost of Goods Sold.....................................................................687,000E. Buono, Capital........................................................................402,000E. Buono, Withdrawals..............................................................92,000Equipment..............................180,000Interest Earned..........................................................................4,000Inventory....................................................................................143,000Operating Expenses..................................................................355,000Sales Discounts..........................................................................10,300Sales Returns and Allowances................................................32,900Sales Revenue............................................................................1,045,200Supplies......................................................................................14,600Unearned Sales Revenue..........................................................9,000

NOTE: For simplicity, all operating expenses have been summarized in the account Operating Expenses.

Additional data at July 31, 2020:

A physical count of items showed $3,000 of supplies on hand. (Hint: Use the account Operating Expenses in the adjusting journal entry.)

An inventory count showed inventory on hand at July 31, 2020, of $140,000.

The equipment has an estimated useful life of eight years and is expected to have no scrap or residual value at the end of its life. (Hint: Use the account Operating Expenses in the adjusting journal entry.)

Unearned sales revenue of $5,600 was earned by July 31, 2020.

Required

Record all adjustments and closing entries that would be required on July 31, 2020.

Prepare the multi-step income statement and statement of owners equity for the year ended July 31, 2020, and the classified balance sheet in report format as at July 31, 2020.