Using the transactions below:

We are going to draw up a balance sheet and an income statement.

Ray Thomas started a tutoring business, Tutors, on February 1, 2020. During the month of February, the following transactions occurred:

a.Ray invested $18,000 cash in the business.

b.He bought office supplies costing $4,600, for which he paid $2,000 and had an outstanding balance of $2,600.

c.Ray paid $1,200 for a year insurance coverage.

d.He earned $3,300 in revenue but only received $1,300 whilst the remaining $2,000 is outstanding.

e.He paid $2,300 cash on the account to the company that supplied the office supplies in transaction (b).

f.Paid office rent of $750 for the month.

g.Ray withdrew $1,000 cash for personal use.