These financial statement items are for Basten Tax Services at year-end, July 31, 2020.

Salaries and wages payable £ 2,080 ..........................................Notes payable (long-term) £ 1,800
Salaries and wages expense 48,700 ................................................................................Cash 14,200
Utilities expense 22,600 ............................................................................Accounts receivable 9,780
Equipment 34,400 ....................................................Accumulated depreciation—equipment 6,000
Accounts payable 4,100 ................................................................................Owner’s drawings 3,000
Service revenue 63,000 ..........................................................................Depreciation expense 4,000
Rent revenue 8,500 ..................................................Owner’s capital (beginning of the year) 51,200

Instructions
a. Prepare an income statement and an owner’s equity statement for the year. The owner did not make.any new investments during the year.
b. Prepare a classified statement of financial position at July 31.