Using the trial balance prepared in Part 4 of Problem 2-9B, prepare an income statement and statement of changes in equity for the two months ended July 31, 2014, and a balance sheet at July 31, 2014.
In problem 2-9B
At the beginning of June 2014, Brett Wilson created a moving company called Frog Box Company. The company had the following transactions during July, its second month of operations:
July 1 Purchased office equipment for $9,000 and a truck for $56,000 by signing a long-term note payable.
2 Purchased land for an office. The land was worth $124,000, which was paid with $40,800 cash and a long-term note payable for the balance.
3 Purchased a used portable building with $21,000 cash and moved it onto the land.
5 Paid $9,600 cash for the premiums on two one-year insurance policies.
9 Provided services to a client and collected $3,200 cash.
12 Purchased additional office equipment for $6,500. Paid $700 cash and signed a long-term note payable for the balance.
15 Completed $3,750 of services for a client. This amount is due within 30 days.
20 Completed another hauling job for $9,200 on credit.
21 Received a bill for rent on a specialized hauling truck that was used to complete the job done on July 20. The $1,300 rent must be paid within 30 days.
22 Collected $5,000 from the client described in the transaction on July 20.
23 Paid $1,600 wages to an assistant.
24 Paid the account payable created in the transaction of July 21.
25 Paid $1,425 cash for some repairs to the truck.
26 Wilson withdrew $3,875 in cash from the business for personal use.
27 Paid $1,600 wages to an assistant.
28 Paid $800 cash for advertising in the local newspaper during July.
29 Received $1,400 from a client for services to be performed in August.