Bradley’s Bandwidth reported the following figures from its adjusted trial balance for its first year of business, which ended on July 31, 2020:

Account	Amount
Cash	$4,130
Selling Expenses	1,290
Accounts Payable	4,930
Bradley's Capital	2,750
Notes Payable, long-term	350
Merchandise Inventory	1,150
Administrative Expenses	3,540
Sales Returns and Allowances	7,300
Cost of Goods Sold	18,680
Equipment, net	7,990
Accrued Liabilities	2,030
Sales Revenue	41,900
Accounts Receivable	3,430
Interest Expense	30
Sales Discounts	4,420

 

a) Prepare an income statement for Bradley's Bandwidth. 

Bradley's Bandwidth
Income Statement
For year ending July 31, 2020

Description	Amount	Total
Administrative ExpensesCost of Goods SoldGross ProfitInterest ExpenseNet IncomeNew SalesSales DiscountsSales Returns and AllowancesSales RevenueSelling ExpensesTotal Income From OperationsTotal Operating Expenses
Subcategory,Less:
Administrative ExpensesCost of Goods SoldGross ProfitInterest ExpenseNet IncomeNew SalesSales DiscountsSales Returns and AllowancesSales RevenueSelling ExpensesTotal Income From OperationsTotal Operating Expenses		Single line
Administrative ExpensesCost of Goods SoldGross ProfitInterest ExpenseNet IncomeNew SalesSales DiscountsSales Returns and AllowancesSales RevenueSelling ExpensesTotal Income From OperationsTotal Operating Expenses	Single line	Single line
Net Sales		Single line
Administrative ExpensesCost of Goods SoldGross ProfitInterest ExpenseNet IncomeNew SalesSales DiscountsSales Returns and AllowancesSales RevenueSelling ExpensesTotal Income From OperationsTotal Operating Expenses		Single line
Gross Profit		Single line
Subcategory,Operating Expenses:
Administrative ExpensesCost of Goods SoldGross ProfitInterest ExpenseNet IncomeNew SalesSales DiscountsSales Returns and AllowancesSales RevenueSelling ExpensesTotal Income From OperationsTotal Operating Expenses
Administrative ExpensesCost of Goods SoldGross ProfitInterest ExpenseNet IncomeNew SalesSales DiscountsSales Returns and AllowancesSales RevenueSelling ExpensesTotal Income From OperationsTotal Operating Expenses	Single line	Single line
Total Operating Expenses		Single lineSingle line
Total Income from Operations		Single line
Subcategory,Other Revenue (Expenses)
Administrative ExpensesCost of Goods SoldGross ProfitInterest ExpenseNet IncomeNew SalesSales DiscountsSales Returns and AllowancesSales RevenueSelling ExpensesTotal Income From OperationsTotal Operating Expenses		Single line
Net Income		Single lineDouble line

b) Prepare the Statement of Retained Earnings for Bradley's Bandwidth.

Bradley's Bandwidth
Statement of Owners Equity
For year ending July 31, 2020

Description	Amount
Bradley's Capital, August 1, 2019Bradley's Capital, July 31, 2020Less DrawingNet IncomeRetained Earnings, August 1, 2019
Bradley's Capital, August 1, 2019Bradley's Capital, July 31, 2020Less DrawingNet IncomeRetained Earnings, August 1, 2019	Single line
	Single line
Bradley's Capital, August 1, 2019Bradley's Capital, July 31, 2020Less DrawingNet IncomeRetained Earnings, August 1, 2019	Single line
Bradley's Capital, July 31, 2020	Single line

c) Prepare the Balance Sheet for Bradley's Bandwidth.

Bradley's Bandwidth
Balance Sheet
For year ending July 31, 2020

Description	Amount	Total
Subcategory,Assets
Accounts PayableAccounts ReceivableAccrued LiabilitiesBradley's CapitalCashEquipment, netMerchandise InventoryNotes Payable, long-term
Accounts PayableAccounts ReceivableAccrued LiabilitiesBradley's CapitalCashEquipment, netMerchandise InventoryNotes Payable, long-term
Accounts PayableAccounts ReceivableAccrued LiabilitiesBradley's CapitalCashEquipment, netMerchandise InventoryNotes Payable, long-term
Accounts PayableAccounts ReceivableAccrued LiabilitiesBradley's CapitalCashEquipment, netMerchandise InventoryNotes Payable, long-term	Single line	Single line
Total Assets		Single line
Subcategory,Liabilities
Accounts PayableAccounts ReceivableAccrued LiabilitiesBradley's CapitalCashEquipment, netMerchandise InventoryNotes Payable, long-term
Accounts PayableAccounts ReceivableAccrued LiabilitiesBradley's CapitalCashEquipment, netMerchandise InventoryNotes Payable, long-term
Accounts PayableAccounts ReceivableAccrued LiabilitiesBradley's CapitalCashEquipment, netMerchandise InventoryNotes Payable, long-term	Single line	Single line
Total Liabilities		Single line
Subcategory,Equity
Accounts PayableAccounts ReceivableAccrued LiabilitiesBradley's CapitalCashEquipment, netMerchandise InventoryNotes Payable, long-term	Single line	Single line
Total Equity		Single lineSingle line
Total Liabilities and Equity		Single line