An analysis of the transactions made by K. T. Lang & Co., a law firm, for the month of July is shown below. Each increase and decrease in equity is explained. 
Instructions
(a) Prepare an income statement for the month ending July 31, 2014.
(b) Prepare a retained earnings statement for the month ending July 31, 2014.
Definitions:
Q13: Suppose you borrow $2,000 from a bank
Q29: An advantage of using a subsidiary ledger
Q46: Suppose that 144 yen could be purchased
Q212: All business transactions must be entered first
Q216: An analysis of the transactions made by
Q216: The journal entry to record the payroll
Q219: The employer incurs a payroll tax expense
Q225: Match the items below by entering the
Q254: Marilu Company began the year with equity
Q276: A provision is a liability of uncertain