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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

[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

=

Liabilities

+

Stockholders' Equity

Cash Accounts Receivable Supplies Equipment Accounts Payable Common Stock Retained Earnings
(a) +12,000 +12,000
(b) +835 835 Utilities expense
(c) +6,350 +6,350 Service revenue
(d) 6,850 +12,290 +5,440
(e) +1,980 +1,980 Service revenue
(f) +940 +940
(g) 4,080 4,080
(h) 3,640 3,640 Wage expense
(i) 975 975 Rent expense
(j) +1,905 1,905
340 4,445 940 12,290 3,135 12,000 2,880
Required:
2-a.

Prepare an income statement as of July 31.

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