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Prepare the following reports with proper headings and dates:

a.) Income Statement for the 2 months ending July 31, 2018.

b.) Retained Earnings Statement for the 2 months ending July 31, 2018.

c.) "Classified" Balance Sheet as of July 31, 2018.

Here are the details of events and transactions needed to create the 3 reports listed previously.

We 2 Purchas i ng bed as a shop. The 0.00-18.000 dwth the yoy oto The dermagamont of $60.000 the shoo bude mere made to the payment du SA SHuyu had oney Dowland how Corporation r ices $45.000 and the payment is dan P in Eu c hador.000 12 monthnunce policy. The policy W ing Super chased on a day credit Adieywo 1 500 with payment by 7 .000 19 Adida t ed by the mer start on 12. the co a sed on Genced 1 Com the w inged on 12 and stomer conto 00 Paid the adventuroy Compted the w ing ed on 25 and dathird for contact price of $15.750 and W ong on the third timent the conte n ded Reeved on the completed Com he w on 2nd ustomer for the corp o presence is provided on the normation A conto h anded used 10 be don A Depreci p nd e on the building for the Depreciation on d o or or more con poter month Phone ne shop ding d oo ancing the Ford Super Heavy Duty Truck Details of events and transactions start on the next page Baker City Well Drilling, Inc. page 2 of 4 6/1 Issued Common Stock for cash in the amount of $100,000. 6/2 Purchased a small building to be used as a shop. The price was $80,000: $16,000 paid with cash, the remaining balance was a 5 year Note Payable in the amount of $64,000. The purchase price of $80,000 was allocated to land in the amount of $20,000 and the remaining amount of $60,000 to the shop building. Loan payments are made quarterly, the first payment is due on 9/2. 6/3 A Super Heavy Duty Ford Truck was purchased with special "No Money Down" and "No Interest" through Ford Credit Corporation. Purchase price was $45,000 and the first payment is due on 8/3. 6/4 Well Drilling Equipment was purchased for $20,000 cash. 6/4 Prepaid a 12 month insurance policy. The policy was effective as of June 1st and cost $2,400. Drive .. 11:34 AM 1 70% 6/5 Well Drilling Supplies were purchased on a 30 day credit account in the amount of $3,750. 6/6 Advertised in the weekly Baker City Farm News. Total cost was $1,500 with payment due by July 10th. 6/7 Hired an employee at $3,000 per month. 6/9 A drilling bid of $9,500 was accepted by their first customer for a job to start on 6/12, the contract was signed on 6/9. 6/19 Bid a second job for $14,800 and received a $4,800 cash payment in advance (job to start on 6/25) contract was signed 6/19. Continued on the next page. Baker City Well Drilling, Inc. page 3 of 4 6/21 Completed the well drilling job started on 6/12 and billed the customer the contract price of $9,500. 6/28 Paid the advertising bill of $1,500 from Baker City Farm News. Drive .. 11:34 AM 1970% 7/1 Paid employee's wages for June. Note: since it was for a short Month (6/8 - 6/30) total paid was prorated in the amount of $2,250. 7/3 Paid the account payable related to supplies purchased on 6/5. 7/6 Completed the well drilling job started on 6/25 and billed customer for the remaining balance due. 7/12 Bid a third job for a contract price of $15,750 and started the job immediately. 7/16 While working on the third job, a repair to equipment was required, the cost of the repair was $210 and was paid in cash. 7/18 Received a partial payment from the first job completed and billed last month on 6/21; partial payment received was $5,000. 7/27 Completed the third job that was started on 7/12. Billed the customer for the contract price. 1970% Drive .. 11:35 AM page 4 of 4 Adjusting Entry Information 7/31 A count of drilling supplies on hand indicated unused supplies still on hand totaled $1,850. 7/31 Wages of $2,750 earned by employees in July are scheduled to be paid on the first business day of August. 7/31 Depreciation expense on the building for 2 months amounts to $1,200. Depreciation expense on drilling equipment for 2 months amounts to $450. Depreciation expense on the truck for 2 months amounts to $200. 7/31 Interest expense has accrued on the note payable for the shop building and land in the amount of $600. Financing the Ford Super Heavy Duty Truck was a zero interest financing offer, therefore, no interest has accrued. 7/31 2 months of the prepaid insurance policy has now expired

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