Using the trial balance prepared for Binbutti Engineering in Part 4 of Problem 2-9A, prepare an income statement and statement of changes in equity for the three months ended July 31, 2014, and a balance sheet at July 31, 2014.
In problem 2-9A, Binbutti Engineering, a sole proprietorship
, completed the following transactions during July 2014, the third month of operations:
July 1 Bishr Binbutti, the owner, invested $300,000 cash, office equipment with a value of $12,000, and $90,000 of drafting equipment in the business.
2 Purchased land for an office. The land was worth $108,000, which was paid with $10,800 cash and a long-term note payable for $97,200.
3 Purchased a portable building with $150,000 cash and moved it onto the land.
5 Paid $12,000 cash for the premiums on two one-year insurance policies.