=+2. Prepare an income statement for August, a statement of owner’s equity for August, and a balance sheet as of August 31.

Swan Dry Cleaners is owned and operated by Peyton Keyes. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets and the liabilities of the business on July 1, 2010, are as follows: Cash, $17,000; Accounts Receivable, $31,000;

Supplies, $3,200; Land, $36,000; Accounts Payable, $10,400. Business transactions during July are summarized as follows: