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 2016. $\begin{array}{c}\begin{array}{lr}\text { Salaries and wages payable } & \$ 2,980 \\\text { Salaries and wages expense } & 45,700 \\\text { Utilities expense } & 21,100 \\\text { Equipment } & 38,000 \\\text { Accounts payable } & 4,100 \\\text { Service revenue } & 57,200 \\\text { Rent revenue } & 6,500\\\\\end{array}\begin{array}{lr}\text { Notes payable (long-term) } & \$ 3,000 \\\text { Cash } & 5,200 \\\text { Accounts receivable } & 9,780 \\\text { Accumulated depreciation } & 6,000 \\\text { Owner's Drawings } & 4,000 \\\text { Depreciation expense } & 4,000 \\\text { Omer's capital (beginning } & 48,000 \\\text { of the vear) } &\end{array}\end{array}$ 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.