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1.	Describe the business activities that led to the accounting equation effects for each transaction shown above.

Required:

2-a.	Prepare an income statement as of July 31.

2-b.	Prepare a statement of retained earnings for July, 31.

2-c.	Prepare a classified balance sheet as of July 31, 2013.

3-a.	Calculate the net profit margin, expressed as a percent.(Round your answer to 1 decimal place.)

b.

Is NepCo more or less profitable than its competitor, which earned a net profit margin of 25.0 percent?

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[The following information applies to the questions displayed below.] An analysis of transactions made during July by NepCo, an Internet service provider, during its first month of operations is shown below. Increases and decreases affecting revenues and expenses are explained. Assets Stockholders' Equi Liabilities Accounts Accounts Receivable Supplies Equipment Commorn Stock +20,000 Cash Payable Retained Earnings (a) +20,000 +965 +4,600 +680 -965 Utilities expense +6,500 Service revenue +6,500 (d) 7,250 (e) +2,980 +11,850 +2,980 Service revenue +680 (g)3,450 (h) 3,160 () -830 0) +1,950 -3,450 -3,160 Wage expense -830 Rent expense -1,950 10,240 4,550 680 11,850 2,795 20,000 4,525 4.00 points value: Required 1. Describe the business activities that led to the accounting equation effects for each transaction shown above Financial Statements Activities b