Buono Adventures, which uses the perpetual inventory system, has the following account balances (in alphabetical order) on July 31, 2023:

Additional data at July 31, 2023:

a. A physical count of items showed $3,000 of supplies on hand.

b. An inventory count showed inventory on hand at July 31, 2023, of $140,000.

c. The equipment has an estimated useful life of 8 years and is expected to have no scrap or residual value at the end of its life.

d. Unearned sales revenue of $5,600 was earned by July 31, 2023.

Required1. Record all adjustments and closing entries that would be required on July 31, 2023. 

2. Prepare the multi-step income statement and statement of owner’s equity for the year ended July 31, 2023, and the classified balance sheet in report format as at July 31, 2023.

Transcribed Image Text:

Accounts Payable. Accounts Receivable.......... Accumulated Amortization-Equipment. Cash............... Cost of Goods Sold... E. Buono, Capital.......... E. Buono, Withdrawals. Equipment..........…....... Interest Earned.... Inventory Operating Expenses. Sales Discounts................. Sales Returns and Allowances. Sales Revenue Supplies ........ Unearned Sales Revenue... $ 21,600 23,200 64,600 8,400 687,000 402,000 92,000 180,000 4,000 143,000 355,000 10,300 32,900 1,045,200 14,600 9,000