These financial statement items are for Obaid Al Dhanhani Company at year-end, July 31, 2020.

Salaries and wages payable$ 2,980Notes payable (long-term)$ 3,000

Salaries and wages expense45,700Cash5,200

Utilities expense21,100Accounts receivable9,780

Equipment38,000Accumulated depreciation6,000

Accounts payable4,100Owners Drawings4,000

Service revenue57,200Depreciation expense4,000

Rent revenue6,500Owners capital (beginning48,000

of the year)

Instructions

(a)Prepare an income statement and an owners equity statement for the year. The owner did not make any new investments during the year.

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