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, 2025. Assume that August is the company’s first month of business.

Determine net income (or loss).

E1.8

An analysis of the transactions made by Kang & Co., a public accounting firm, for the month of August is shown below.

Instructions

a. 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.
Prepare financial statements.

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Assets Accounts - Liabilities + Accounts Share Cash + Receivable + Supplies + Equipment Payable + Capital + + 1. + 15,000 15,000 2. -2,000 +5,000 +3,000 3. -750 +750 4. +4,600 +4,500 5. -1,500 6. -2,000 Equity Retained Earnings Rev. 9,100 -1,500 Exp. - Div. Issued Shares Service Revenue 7. -650 8. +450 -450 9. -3,900 10. Dividends 2,000 -650 Rent Expense -3,900 Sal./Wages Expense +500 -500 Utilities Expense