Bill Sankey is a sole proprietor who keeps records of his cash and bank transactions. His transactions for the month of March were as follows:

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March 1 4 6 8 10 Cash in hand 400, Cash at bank 6,000. Sankey received a cheque for 1,200 from W. Abbot which was paid directly into the bank. This represented sales. Paid wages in cash 60. Sold goods for cash 300. Received cheque from G. Smart for 600, in full settlement of a debt of 640; this was paid directly into the bank. 11 Paid sundry expenses in cash 48. 14 Purchased goods by cheque for 1,400. 18 Paid J. Sanders a cheque of 190 in full settlement of a debt of 210. 23 Withdrew 25 from the bank to pay the office cleaning company. 24 Paid wages in cash 60. 26 Sold goods for cash 380. 28 Paid salaries by cheque 240. 31 Retained cash amounting to 600 and paid the remainder into the bank. Required: (a) Enter the above transactions within T-accounts and bring down the balances. (b) Assuming no opening accounts receivable, accounts payable, or inventory, prepare an income statement for the month ended 31 March.