On August 1, 2019, 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, 2020, Jay Grey, the owner, finalized the company?s records, which showed the following items.

The ending capital balance for one period is the beginning capital balance for the next period. There were no owner investments during the year ended July 31, 2020.

Required

Prepare an income statement and statement of changes in equity for the year ended July 31, 2020, and balance sheet at July 31, 2020, similar to Exhibits 1.8, 1.9, and 1.10.

Analysis Component: Analyze the balance sheet and calculate what percentage of the assets at July 31, 2020, were financed by (a) debt and (b) equity.

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Accounts payable. Accounts receivable. Jay Grey, capital, July 31, 2019* Jay Grey, withdrawals Prepaid rent. Rent expense. Personal training revenue. $ 5,500 $ 10,900 57,000 21,500 5,500 153,500 3,900 17,400 11,300 80,800 53,500 Group training revenue Supplies . Supplies expense. Utilities expense. Cash. 7,100 14,700 3,600 35,000 20,700 Furniture. Interest expense.. Notes payable. Wages expense 69,500 Workout equipment.