Buono Adventures which uses the perpetual inventory system has the

Buono Adventures, which uses the perpetual inventory system, has the following account balances (in alphabetical order) on July 31, 2017:

Accounts Payable………………………………………………. $ 21,600

Accounts Receivable …………………………………………… 23,200

Accumulated Amortization-Equipment………………… 64,600

Cash ……………………………………………………………………. 8,400

Cost of Goods Sold …………………………………………… 687,000

E. Buono, Capital ……………………………………………… 402,000

E. Buono, Withdrawals……………………………………….. 92,000

Equipment………………………………………………………… 180,000

Interest Earned…………………………………………………….. 4,000

Inventory………………………………………………………….. 143,000

Operating Expenses …………………………………………… 355,000

Sales Discounts…………………………………………………… 10,300

Sales Returns and Allowances ……………………………… 32,900

Sales Revenue………………………………………………….. 1,045,200

Supplies ……………………………………………………………… 14,600

Unearned Sales Revenue……………………………………….. 9,000

For simplicity, all operating expenses have been summarized in the account Operating Expenses.

Additional data at July 31, 2017:

a. A physical count of items showed $3,000 of supplies on hand.

b. An inventory count showed inventory on hand at July 31, 2017, of $140,000.

c. The equipment has an estimated useful life of eight years and is expected to have no value at the end of its life.

d. Unearned sales revenue of $5,600 was earned by July 31, 2017.

Required

1. Record all adjustments and closing entries that would be required on July 31, 2017.

2. Prepare the financial statements of Buono Adventures for the year ended July 31, 2017.

Buono Adventures which uses the perpetual inventory system has the