Requirements 1. Please prepare an Income and Expense Statement for the month ending July 2015 using the information below. 2. You are also expected to prepare a Balance Sheet using the below information. 1.2 Background Information LMK Reach Consulting is a tax consulting company. The company plans to prepare a monthly financial statement. During July, the company completed the following transactions: 1.3 Scenarios 07/01 The owner of LMK Reach Consulting invested $500,000 cash along with computer equipment that had a market value of $120,000 two years ago but was now worth $100,000 only. 07/02 Paid $15,000 cash for the rent of office space for the month. 07/04 Purchased $12,000 of additional equipment on credit (due within 30 days). 07/07 Completed work for a client and immediately collected the $32,000 cash 07/10 Completed work for a client and sent a bill for $27,000 to be paid within 30 days 07/12 Purchased additional equipment for $8,000 in cash 07/15 Paid an Assistant $6,200 cash as wages for 15 days 07/18 Collected $15,000 on the amount owned by the client 07/25 Paid $12,000 cash to settle the liability on the equipment purchased. 07/28 Owner withdrew $5,000 cash for personal use. 07/30 Completed work for another client who paid only $40,000, which is 50% of work done. The client promised to pay the balance in September. 07/31 Paid salary of $7,700

07/31 The Company received Phone bill of $1,800 and Gas bill $3,800 for the month of July, but paid in August