These Financial Statement Items Are for Rugen Company at Year-End

Essay

These financial statement items are for Rugen Company at year-end, July 31, 2018. $\begin{array}{lrlr}\text { Salaries and wages payable } & \$ 2,980 & \text { Notes payable (long-term) } & \$ 3,000 \\\text { Salaries and wages expense } & 45,700 & \text { Cash } & 5,200 \\\text { Utilities expense } & 21,100 & \text { Accounts receivable } & 9,780 \\\text { Equipment } & 38,000 & \text { Accumulated depreciation } & 6,000\\\text { Accounts payable } & 4,100 & \text { Dividends } & 4,000 \\\text { Service revenue } & 57,200 & \text { Depreciation expense } & 4,000 \\\text { Rent revenue } & 6,500 & \text { Retained earnings } & 28,000 \\\text { Common stock } & 20,000 & \text { (Auq. 1, 2017) } &\end{array}$ Instructions
(a) Prepare an income statement and a retained earnings statement for the year. Stockholders not make any new investments during the year.
(b) Prepare a classified balance sheet at July 31.