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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.