The adjusted trial balance for Navajo Company is presented below.

NAVAJO COMPANY

Adjusted Trial Balance

July $31,2022$

Debits

Credits

$101$ Cash

$112$ Accounts Receivable

$157$ Equipment $9,000$

$167$ Accumulated Depreciation $,25,000$

$201$ Accounts Payable

$208$ Unearned Rent Revenue

$311$ Common Stock

Navajo made an error during the year when they debited Utilities Expense for $$2,000$ instead of Equipment for

a cash purchase of equipment. In addition, Navajo failed to accrue $$4,000$ of Service Revenue.

Instructions:

$($a$)$ Prepare an income statement and a retained earnings statement for the year.

$($b$)$ Prepare a classified balance sheet at July $31.$