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 owner's equity is explained. 
Instructions
(a) Prepare an income statement for the month ending July 31, 2010.
(b) Prepare an owner's equity statement for the month ending July 31, 2010.
Definitions:
Fair Market Value
The price at which a willing buyer and willing seller would transact, with neither being under any compulsion to buy or sell.
Net Book Value
The value of an asset after subtracting accumulated depreciation or amortization from its original cost.
TSX
The Toronto Stock Exchange, a major stock exchange in Canada where shares of public companies are traded.
Outstanding Shares
The total number of shares of a corporation that are currently owned by investors, including restricted shares owned by the company's officers and insiders.
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