Kay Marie opened her interior design firm, KM Designs. Transactions made by KM Designs for the month of August are shown below.
1. The owner invested $10,000 cash in the business.
2. The company purchased $4,000 of office equipment on credit.
3. The company received $3,000 cash in exchange for services performed.
4. The company paid $400 for utilities in August.
5. The owner withdrew $1,000 cash for personal use.
a. Prepare a transaction analysis using T-accounts.
b. Compute net income.