Chapter 5, Problem S5.9SE

Use the following information to answer Short Exercises S5-8 and S5-9.

Carissa Communications reported the following figures from its adjusted trial balance for its year of business, which ended on July 31, 2016:

Cash	$4,100	Cost of goods Sold	$18,800
Selling Expenses	1,300	Equipment net	8,500
Accounts Payable	4,900	Accrued Liabilities	2,000
Carissa. Capital	2,820	Sales Revenue	42,000
Notes Payable, long-term	400	Accounts Receivable	3, 400
Merchandise Inventory	1,200	Interest Expense	20
Administrative Expenses	3,100	Sales Discounts	4,300
Sales Returns and Allowances	7,400

S5-8 Preparing a merchandiser's income statement

Prepare Carissa Communications's multi-step income statement for the year ended July 31, 2016.

S5-9 Preparing a merchandiser's statement of owner’s equity and balance sheet

Requirements

1. Prepare Carissa Communications's statement of owner's equity for the year ended July 31, 2016. Assume that there were no additional contributions or withdrawals during the year and that the business began on August 1, 2015.

2. Prepare Carissa Communications's classified balance sheet at July 31, 2016. Use the report format.