These financial statement items are for Norsted Company at year-end, July 31, 2015.
A. Prepare an income statement and a retained earnings statement for the year.
B. Prepare a classified balance sheet at July 31.
Norsted Company
Income Statement
For The Year Ended July 31, 2015
Revenues:
Expenses:
Norsted Company
| For the Year Ended July 31, 2015 |
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| Salaries and wages payable |
$ 2,080 |
Notes payable (long-term) |
$ 1,800 |
| Salaries and wages expense |
51,700 |
Cash |
14,200 |
| Utilities expense |
22,600 |
Accounts receivable |
9,780 |
| Equipment |
30,400 |
Accumulated depreciation-equipment |
6,000 |
| Accounts payable |
4,100 |
Dividends |
3,000 |
| Service revenue |
62,000 |
Depreciation expense |
4,000 |
| Rent revenue |
8,500 |
Retained earnings (beginning of the year) |
21,200 |
| Common stock |
30,000 |
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