Reference no: EM132651445

Problem - Prepare the income statement and statement of retained earnings for the year ended July 31, 2018 as well as the balance sheet as of July 31, 2018.

Land $25,000

Accounts payable 17,500

Accounts receivable 19,000

Service revenue 450,000

Note payable (long term) 45,000

Advertising expense 10,000

Supplies on hand 1,200

Common shares 10,000

Building 175,000

Telephone expense 2,800

Insurance expense 1,500

Cash 22,600

Salary expense 295,000

Office expense 12,000

Income tax payable 20,000

Income tax expense 20,000

Dividends 10,000

Additional information: Retained earnings, July 31, 2017$ 51,600.