The journal entries for August, Carley’s Car Care’s second month of business, have been journalized in the general journal in your Working Papers or in CengageNow. The balances of the accounts as of July 31 have been recorded in the general ledger in your Working Papers or in CengageNow. Notice the word Balance in the Item column, the check mark in the Post. Ref. column, and the fact that the amount is in the Balance column only. This indicates a balance brought forward from a prior page or month.

Required

1. Write the owner’s name, M. Carley, in the Capital and Drawing accounts.

2. Post the general journal entries to the general ledger accounts.

3. Prepare a trial balance as of August 31, 20—.

4. Prepare an income statement for the two months ended August 31, 20—.

5. Prepare a statement of owner’s equity for the two months ended August 31, 20—.

6. Prepare a balance sheet as of August 31, 20—.