Carissa Communications reported the following figures from its adjusted trial balance for its first year of business, which ended on July 31, 2016:
Cash............... $4,100
Selling Expenses......... 1,300
Accounts Payable......... 4,900
Common Stock......... 2,820
Notes Payable, long-term...... 400
Merchandise Inventory..... 1,200
Administrative Expenses..... 3,100
Sales Returns and Allowances .... 7,400
Cost of Goods Sold.........$ 18,800
Equipment, net......... 8,500
Accrued Liabilities......... 2,000
Sales Revenue........... 42,000
Accounts Receivable......... 3,400
Interest Expense......... 20
Sales Discounts......... 4,300
Requirements
1. Prepare Carissa Communications s statement of retained earnings for the year ended July 31, 2016. Assume that there were no dividends declared during the year and that the business began on August 1, 2015.
2. Prepare Carissa Communications s classified balance sheet at July 31, 2016. Use the report format.