The equation below shows the transactions of Linda Carter, Attorney and Counselor of Law, during August. This law firm is owned by Linda Carter.

INSTRUCTIONS
Analyze each transaction carefully. Prepare an income statement and a statement of owner's equity for the month. Prepare a balance sheet for August 31, 2013. List the expenses in detail on the income statement.
Analyze:
In order to complete the statement of owner's equity, which amount was transferred from the income statement?

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Assets Lia.+ Owner's Equity Accts. Rec. + Supp. + Equip. Accts. . Carter, PayCapa Rev. Cash 1,8005,40010,0001,20023,2000 Balances, Aug. 1 Paid for utilities New balances Performed services 7,200 600 6,6001,8005,40010,0001,200 23,200 + 0 +600 600 for cash New balances Paid a creditor New balances Performed services +6,000 12,600 +1,800+5.400 10,0001.20023,200 + 6,000 +6,000 600 600 12.000+ 1.800 5.400 + 10,000 = 600 23.200 + 6,000- 600 600 +4,800 12,000+6,600+5,40010,00060023,200+10,800 on credit New balances Paid salaries New balances Paid telephone bill New balances Withdrew cash for +4.800 600 +5,400 6,000 +600 6,600 5,400 6,6006,6005,400 10,00060023,200+10,800 - 600 6,0006,6005,40010,00060023,20010,800 - 1,200 4,800 + 6,600 5,400 + 10,000 personal expenses -1,200 New balances 600 + 22,000 + 10,800- 6,600