An analysis of the transactions made by Kang & Co., a public accounting firm, for the month of August is shown below. The expenses were £560 for rent, £4,800 for salaries and wages, and £400 for utilities.

Instructions

a. Describe each transaction that occurred for the month.

b. Determine how much owner’s equity increased for the month.

c. Compute the amount of net income for the month.

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Accounts Accounts Owner's Owner's Cash + Receivable + Supplies + Equipment = Payable Capital Drawings Revenues Expenses 1. +£15,000 +£15,000 2. -2,000 +£5,000 +£3,000 3. -750 +£750 4. +4,000 +£4,500 +£8,500 5. -1,500 -1,500 6. -2,000 -£2,000 7. -560 -£560 8. +450 450 9. -4,800 4,800 10. +400 -400