Question 2 AM Consultants operates a number of Consultancy firms (Brisbane and Sydney). The following information relates to a number of accounts presented in the Trial Balance of AM Consultants (post adjustments) for the year ending 30th June 2020. Accounts S Accounts payable 170 000 Insurance expense 70 000 Consulting service revenue 1,500 000 Buildings 1,300 000 Office equipment 30 000 Cash at Bank 50 020 Promotions expense 35 000 Accounts receivable 75 000 Salaries expense 150 500 Mortgage payable 600 000 Office supplies 40 000 Capital 500 000 Office materials expense 367 565 Drawings 75 500 Land 750 000 Rent expense 80 350 Utilities (gas/water, etc.) 50 500 Required: a. From the information provided, prepare the Income Statement for AM Consultants b. In your own words, explain how the income statement is linked to the balance sheet