On August 1, 2016, Cross Fitness entered its second year of operations. Cross Fitness provides high- performance group and personal training courses that have been derived from scientific research and exercises used by professional athletes. On July 31, 2017, Jay-Jay Grey, the owner, finalized the company€™s records, which showed the following items.

Required 

Prepare an income statement and statement of changes in equity for the year ended July 31, 2017, and balance sheet at July 31, 2017, similar to Exhibits 1.8, 1.9, and 1.10.

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Accounts payable. Accounts receivable.. Jay-Jay Grey, capital, July 31, 2016* Jay-Jay Grey, withdrawals Workout equipment . Prepaid rent... $ 9,400 $ 19,200 4,000 42,000 79,300 Rent expense. Personal training revenue 14,000 46,000 2,500 Group training revenue Supplies... Cash 5,600 131,000 Furniture.... 13,200 2,400 Supplies expense.. Interest expense 2,100 15,900 Notes payable Utilities expense 9,800 20,000 Wages expense... 68,000