Unit 5 Activity 1 - The Income Statement Part I Analyze the following transactions for Delores Burrows, a lawyer, and post to the correct T-accounts: The transactions are for the month of April, 2007. 1. Received $100 from Ace Supply Co. on account. (Cash & A/R Ace S Co.) 2. Received $325 cash from a client for drawing up a legal agreement. (Dr Cash & Cr Fees Earned) 3. Paid secretary the regular weekly wages of $390. (Cash & Wages Ex) 4. Received the fuel bill of $150, from Municipal Oil Co., but did not pay immediately. (Cr A/P Municipal Oil Co & Dr Heating Expense) 5. Withdrew $150 cash for her personal use. (Cr Cash & Dr Drawings) 6. Issued a cheque for $80 for the monthly telephone bill. 7. Received $300 cash from a client for handling a real estate transaction. Bank A/R Ace Supplies A/P Municipal Oil 9000 1000 D. Burrows, Drawings Fees Earned Wages Expense Telephone Expense D. Burrows, Capital Fuel Expense 10000 Part II: Use the chart below to create an Income Statement based on the t-accounts in Part I Who? What? When? Revenue: Expenses: Net Income