ASSET = LIABILITIES

Stransaction Cash + Accounts Receivable + Supplies + Equipment = Notes Payable +

5000 + 1500 + 500 + 6000 = +
1 +1,200 -1,200
2 -2,800
3 +4,000 +3,500
4 -400 +2,000
5 -4,100

6 -700
7 +2,000 +2,000

4200 + 3800 + 500 + 8000 = 2000 +

16500 = 16500

INCOME STATEMENT
AI FANG CO
Income statement
For August
Revenues
Service Revenues 7500
Expenses
Salaries expense 2800
Rent expense 900
Ad expenses 400
Utility expense 270
Total expenses 4370
Net income 3130
LIABILITIES + EQUITY
Accounts Payable + Share Capital- Ordinary + Retained Earnings + Revenues - Expenses -
4200 + 4000 + 4800

-2,800
+7,500
+1,600
-2,800
-900
-400

+270 -270
3270 + 4000 + 4800 + 7500 - 4370 -

RETAINED EARNINGS STATEMENT

AI FANG CO
Retained Earnings Statement
For August
Retained earnings, August 1 4800
Add: Net income 3130
7930
Less: Dividends 700
Retained earnings, August 31 7230

STATEMENT OF FINANCIAL POSITION

AI FANG CO
Statement of Financial Position
Assets
Equipment 8000
Supplies 500
Accounts receivable 3800
Cash 4200
Total assets 16500
Equity and Liabilities
Equity
Share capital-ordinary 4000
Retained earnings 7230
Liabilities
Accounts payable 3270
Notes payable 2000
Total quity and liabilities 16500
Dividends

-700

700