Reference no: EM132464839

Problem - For simplicity, all operating expenses have been summarized in the account Operating Expenses. Additional data at July 31, 2020:

1. A physical count of items showed $3,000 of supplies on hand. (Hint: Use the account Operating Expenses in the adjusting journal entry.)

2. An inventory count showed inventory on hand at July 31, 2020, of $140,000.

3. The equipment has an estimated useful life of eight years and is expected to have no scrap or residual value at the end of its life. (Hint: Use the account Operating Expenses in the adjusting journal entry.)

4. Unearned sales revenue of $5,600 was earned by July 31, 2020.

Required -

1. Record all adjustments and closing entries that would be required on July 31, 2020.

2. Need to do the multi-step income statement and statement of owner's equity for the year ended July 31, 2020, and the classified balance sheet in report format as at July 31, 2020.