Computer Systems, Inc., uses job costing. During June, the firm provided computer consulting services for three clients and billed those clients for the services performed. E-Gadgets was billed for 900 hours, E-Shop was billed for 300 hours, and E-Food was billed for 200 hours, all at $200 per hour. Direct labor costs were $100 per hour. Of the 1,600 hours worked in June, 200 hours were not billable. The firm assigns overhead to jobs at the rate of $60 per billable hour. During June, the firm incurred actual overhead of $100,000. The firm incurred marketing and administrative costs of $40,000. All transactions were on account.

a. Show how these revenues and costs would appear in T-accounts.

b. Prepare an income statement for June like the one in Exhibit 2.5.