Using the trial balance of gross balances for Fargo and the additional information given below, answer the following questions about the operations of Fargo. Put answers in box when given. Show all work for credit.

Assume that the company did a physical count of ending inventory and found that they had $70,000 of inventory remaining at the end of July. What is the cost of goods sold for the month of July?

Provide the journal entry to adjust inventory at July 31. Good journal entry format is required.

What was the net income for the month? Prepare an abbreviated income statement to support your work.

The adjusted trial balance of Fargo Company as of July 31, 2017 is presented below. (Read that again, think about what that means about where Fargo is in the accounting cycle.) Notice that the total debits and credits for each account are indicated (including the beginning balances) rather than the usual account balance. For example, the cash account had transactions which resulted in a total of S67,900 debits (including the beginning balance) and a total of S59.600 credits. All adjusting entries have been made for the month of July 2017, except the adjustment for inventory. Fargo's fiscal year end is June 30 Account Cash Accounts Receivable Allowance for Doubtful Accounts Inventorv Prepaid Advertising Office Supplies on Hand Office Equipment Accumulated Depreciation Accounts Payable Salaries Pavable Interest Payable Dividends Pavable Notes Payable Common Stock Additional Paid-In Capital Retained Earnings Sales Sales Returns Sales Discounts Purchases Purchase Returns and Allowances Purchase Discounts Salaries Expense Office Supplies Expense Insurance Expense Advertising Expense Bad Debt Expense Miscellaneous Expense Depreciation Expense Interest Expense Loss on Sale of Office Equipment Totals Debit $67,900 58,000 700 60,000 1,200 1.700 22,000 400 31,900 Credit $59,600 54.400 1,100 400 1.300 1,500 7,600 40,000 800 100 4,000 30,000 10,000 20,000 19,900 61,000 4,000 3,000 4,000 2,200 500 42,000 900 400 9,200 1,300 700 600 500 400 300 300 200 $313.000 S313.000