These financial statement items are for Norsted Company at year-end, July 31, 2022.

Instruction

a. Prepare an income statement and a retained earnings statement for the year.

b. Prepare a classified balance sheet at July 31.

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Salaries and $ 2,080 $ 1,800 Notes payable (long-term) wages payable Salaries and 51,700 Cash 14,200 wages expense Utilities 22,600 Accounts receivable 9,780 expense Equipment Accumulated depreciation- equipment 30,400 6,000 Accounts 4,100 Dividends 3,000 payable Service 62,000 Depreciation 4,000 revenue expense Retained earnings (beginning of the Rent revenue 8,500 21,200 year) Common stock 30,000