The equation below shows the transactions of Kathryn Proctor, Attorney and Counselor of Law, during August. This law firm is owned by Kathryn Proctor.

INSTRUCTIONS
Analyze each transaction carefully. Prepare an income statement and a statement of owner's equity for the month. Prepare a balance sheet for August 31, 2016. List the expenses in detail on the income statement.
Analyze: In order to complete the statement of owner's equity, which amount was transferred from the income statement?

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Liab.+ Accts. K. Proctor, Assets Owner's Equity Accts. Cash Rec. Supp. +Equip. Py. CopitalRev. - Exp. Balances, Aug. 7,200 1,800 5,400 +10,000 1,20023,200 0 Paid for utilities New balances 6,600 + 1,800 + 5,400+10,000=1,200 + 23,200 + Performed services for cash New balances 2,6001,800 5,400 +10,000 20023,2006,000 Paid a creditor New balances 2,000 1,800 + 5,400 +10,00060023,2006,000 Performed services on credit Mew balances12,0006,6005,400 +10,00060023,200 10,800- +600 600 600 +6,000 +6,000 600 -600 -600 600 +4,800 +4,800 600 +5,400 6,000 +600 6,600 5,400 6,600 + 6,600 +5,400 +10,00060023,200 10,800 ew balances600 Paid telephone bill-600 Mew balances6,0006,600 5400 +10,00060023,200 Withdrew cash for personal expenses 1200 10,800- -1,200 4,800 6,6005,400 +10,00060022,000 1 0,8006,600