Requirements:

1. Prepare the businesss multi-step income statement for the year ended July 31, 2020.
2. Prepare the business's statement of owners equity for the year ended July 31, 2020.
3. Prepare the business's balance sheet for the year ended July 31, 2020.
4. Answer these questions about the company:
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount of the stockholders equity in the business at the end of the year?

Howe Audio Equipment, Inc.'s, accounting records carried the following selected accounts at April 30, 2020: $ 7,300 Inventory Interest revenue Accounts payable Cost of goods sold Other expense Dividends $ 5,900 Selling expense 40 Sales revenue 1,000 Interest expense 26,900 Accounts receivable 1,700 General and administrative expense 300 Retained earnings 38,400 30 600 900 8,730 Howe Audio Equipment, Inc.'s, accounting records carried the following selected accounts at April 30, 2020: $ 7,300 Inventory Interest revenue Accounts payable Cost of goods sold Other expense Dividends $ 5,900 Selling expense 40 Sales revenue 1,000 Interest expense 26,900 Accounts receivable 1,700 General and administrative expense 300 Retained earnings 38,400 30 600 900 8,730