These financial statement items are for Major Company at year-end, July 31, 2012.

Instructions

(a) Prepare an income statement and an owner?s 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.

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$ 2,080 $ 1,800 Salaries and wages payable Salaries and wages expense Utilities expense Equipment Accounts payable Notes payable (long-term) Cash 51,700 14,200 22,600 Accounts receivable 9,780 Accumulated depreciation-equip. Owner's drawings Depreciation expense Owner's Capital (beginning of the year) 30,400 6,000 4,100 3,000 Service revenue 62,000 4,000 Rent revenue 8,500 51,200