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These financial statement items are for Pharoah Company at year-end, July 31, 2022. Salaries and wages payable Salaries and wages expense Supplies expense Equipment Accounts payable Service revenue Rent revenue Notes payable (due in 2025) Common stock $ 3,100 58,700 16,600 17,850 3,800 67,300 9,500 3,800 16,000 33,050 11,800 7,500 4,000 4,000 35,000 Cash Accounts receivable Accumulated depreciation-equipment Dividends Depreciation expense Retained earnings (beginning of the year) PHAROAH COMPANY Income Statement For the Year Ended July 31, 2022 Revenues Service Revenue $ 67,300 Rent Revenue 9,500 Total Revenues $ 76,800 Expenses Salaries and Wages Expense $ 58,700 i Supplies Expense 16,600 i Depreciation Expense 4,000 i Total Expenses 79,300 i Net Income /(Loss) $ -2,500 Prepare a retained earnings statement for the year. Pharoah Company did not issue any new stock during the year. PHAROAH COMPANY Retained Earnings Statement For the Year Ended July 31, 2022 Retained Earnings, August 1, 2021 $ 35,000 Less Net Income /(Loss) $ 2,500 i Less Dividends 4,000 i 6,500 i Retained Earnings, July 31, 2022 $ 28,500 Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.) PHAROAH COMPANY Balance Sheet Assets . $ $ - . . $ Liabilities and Stockholders' Equity - $ $

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