.Angela Duffy, opens her own law office on July, 1 2020. During the first month of operations, the following transactions occurred.

1. Invested BHD10,000 in cash in the law practice.
2. Purchased office equipment on account BHD3,000.
3. Provided legal services to clients for cash BHD1,500.
4. Performed legal services for a client on account BHD2,000.
5. Paid monthly expenses: salaries BHD500, utilities BHD300, and telephone BHD100.

Instructions

1. Use a tabular summary to record the previous transactions. Marking Scheme: 1 mark each X 5 entries= 5 Marks

2. Produce the income statement for the month of July. (5 marks)

3. Produce the balance sheet at July 31. (5 marks)

4. Evaluate the usefulness of income statement and balance sheet in making decisions.( 5 marks)