An analysis of transactions for Kang & Co. was presented in E1.8.

Instructions

Prepare an income statement and an owner’s equity statement for August and a statement of financial position at August 31, 2020. Assume that August is the company’s first month of business.

E1.8

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.

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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