Oblem 1-2a judi salem opened a law office on july 1, 2017. on july

Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $5,300, Accounts Receivable $1,900, Supplies $600, Equipment $6,000, Accounts Payable $4,000, and Owner’s Capital $9,800. During August, the following transactions occurred.

1.   Collected $1,600 of accounts receivable.
2.   Paid $3,000 cash on accounts payable.
3.   Recognized revenue of $7,300, of which $1,900 is collected in cash and the balance is due in September.
4.   Purchased additional equipment for $1,900, paying $400 in cash and the balance on account.
5.   Paid salaries $1,700, rent for August $1,100, and advertising expenses $350.
6.   Withdrew $700 in cash for personal use.
7.   Received $1,600 from Standard Federal Bank—money borrowed on a note payable.

Incurred utility expenses for month on account $270.


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