Question: The accountant for Cyclone Construction Inc posted adjusting entries a

The accountant for Cyclone Construction, Inc., posted adjusting entries (a) through (e) to the accounts at July 31, 2012. Selected balance sheet accounts and all the revenues and expenses of the entity follow in T-account form.

1. Explain the purpose for each adjusting entry.
2. Calculate ending balances in the accounts and use the appropriate accounts to prepare the income statement of Cyclone Construction, Inc., for the year-ended July 31, 2012. List expenses in order from largest to smallest.
3. Were the 2012 operations successful? Give the reason for youranswer.

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