An analysis of transactions for Kang & Co. was presented in E1.8.

Instructions

Prepare an income statement and a retained earnings statement for August and a statement of financial position at August 31, 2020. Assume that August is the company’s first month of business.

Data from E1.8

Transcribed Image Text:

Assets Accounts + Receivable + Supplies + Equipment = Payable + Capital + =Liabilities + Accounts Equity Retained Earnings Rev. - Exp. - Div. Share Cash 1. +£15,000 2. 3. +£15,000 +£3,000 -2,000 +£5,000 -750 +£750 4. 5. +4,600 +£4,500 +£9,100 -1,500 -1,500 -2,000 6. -£2,000 7. -650 -£650 8. 9. -3,900 10. +450 -450 -3,900 -500 +500