Pleese solve E1-8 E1-9

E1-8 An analysis of the transactions made by J. L. Kang & Co. Ltd., a public accounting Analyze transactions and firm, for the month of August is shown on the next page. Each increase and decrease in compute net income equity is explained. (LO 7, 8) 40 1 Accounting in Action Assets Accounts Receivable + Supplies + Equipment Equity Retained Earnings Rev. Div. Cash =Liabilities + Accounts Share Payable Capital +15,000 +3,000 Exp. Issued Shares +5,000 +2750 +14,500 +9,100 Service Revenue 1. +15,000 2. -2,000 3. -750 4. +4.600 5 -1,500 6, -2,000 7. -650 8. +450 9. -3,900 10. -- 1,500 - 2,000 -650 Rent Expense -450 -3,900 Sal./Wages Expense Utilities Expense +500 -500 Prepare financial statements (LO 8) Instructions Describe each transaction that occurred for the month. (b) Determine how much equity increased for the month. (c) Compute the amount of net income for the month. E1-9 An analysis of transactions for J. L. Kang & Co. Ltd. was presented in E1-8. Assume that August is the company's first month of business. Instructions Prepare an income statement and a retained earnings statement for August and a state- ment of financial position at August 31, 2017