1. The following items were taken from the records of Anasonic Corporation for the month ended August 31, 2020

Sales revenue	$635,600
Salaries expense	$80,000
Capital stock issued	$125,800
Cost of goods sold	$337,000
Service revenue	$53,000
Rental expense	$51,400
Repairs and maintenance expense	$54,000
Retained earnings, August. 1, 2020	$230,000
Accounts payable	$40,000
Tax expense	$32,500
Dividends declared and paid	$15,000

1. Prepare an income statement for the month ended August 31, 2020
2. Compute retained earnings as of August 31, 2019
3. During the month, the company made sales of $95,000 on credit, which has not yet been collected in cash. Why are these sales included in the August 2020 income statement?