The adjusted trial balance of PS Music as of July 31, 20Y5 is shown below:
PS Music
Adjusted Trial Balance
July 31, 20Y5
Account No. Debit Balances Credit Balances
Cash 11 9,945
Accounts Receivable 12 4,150
Supplies 14 275
Prepaid Insurance 15 2,475
Office Equipment 17 7,500
Accumulated Depreciation-Office Equipment 18 50
Accounts Payable 21 8,350
Wages Payable 22 140
Unearned Revenue 23 3,600
Common Stock 31 9,000
Dividends 33 1,750
Fees Earned 41 21,200
Music Expense 54 3,610
Wages Expense 50 2,940
Office Rent Expense 51 2,550
Advertising Expense 55 1,500
Equipment Rent Expense 52 1,375
Utilities Expense 53 1,215
Supplies Expense 56 925
Insurance Expense 57 225
Depreciation Expense 58 50
Miscellaneous Expense 59 1,855
42,340 42,340
a. Prepare an income statement for the two months ended July 31, 20Y5.

b. Prepare a statement of stockholders’ equity for the two months ended July 31, 20Y5. (Note: Peyton Smith made investments in PS Music on June 1 and July 1, 20Y5.) If an amount is zero, enter in a "0". If a net loss is incurred or there is a decrease in owner’s equity, enter that amount as a negative number using a minus sign.
c. Prepare a classified balance sheet as of July 31, 20Y5.