The accounts of Massood’s Muffins at July 31, 2023, are listed in alphabetical order below. For simplicity, all operating expenses are summarized in the accounts Selling Expenses and General Expenses. Massood’s Muffins uses the perpetual inventory system.

Required

1. Prepare Massood’s Muffins’ single-step income statement for the year ended July 31, 2023. Show Net Sales Revenue and not the individual accounts.

2. Prepare Massood’s Muffins’ statement of owner’s equity.

3. Prepare Massood’s Muffins’ classified balance sheet in report format at July 31, 2023.

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Accounts Payable... Accounts Receivable.. Accumulated Amortization- Store Equipment...... M. Sterling, Capital.. M. Sterling, Withdrawals. Cash..... Cost of Goods Sold.. General Expenses... Interest Expense. Interest Payable. Interest Revenue.. $ 31,000 78,500 30,750 451,700 41,150 3,100 803,000 122,125 5,100 4,400 750 Inventory. Notes Payable, Long-Term........... Salaries Payable... Sales Discounts. Sales Returns and Allowances.. Sales Revenue. Selling Expenses. Store Equipment... Supplies Unearned Sales Revenue.............. $ 262,500 250,000 11,500 12,500 26,400 945,600 158,625 242,000 8,100 37,400