Question 6

These financial statement items are for Sandhill Corporation at year end, July 31, 2018:

Operating expenses	$32,500		Interest payable		$ 700
Salaries expense	44,700		Supplies expense		1,300
Unearned revenue	12,000		Dividends declared		14,000
Utilities expense	2,800		Depreciation expense		3,900
Equipment	57,100		Retained earnings, Aug. 1, 2017		21,440
Accounts payable	4,920		Rent expense		11,000
Service revenue	113,100		Income tax expense		5,700
Rent revenue	19,500		Supplies		1,600
Common shares	27,000		Held for trading investments		24,500
Cash	5,560		Bank loan payable (due Dec. 31, 2018)		21,300
Accounts receivable	18,600		Interest expense		2,400
Accumulated depreciationequipment	5,700

Additional information: Sandhill started the year with $15,000 of common shares and issued additional shares for $12,000 during the year.

SANDHILL CORPORATION Income Statement