Problem 1-2A (Part Level Submission)
Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $6,000, Accounts Receivable $1,600, Supplies $400, Equipment $6,000, Accounts Payable $4,000, and Owner’s Capital $10,000. During August, the following transactions occurred.
|1.||Collected $1,300 of accounts receivable.|
|2.||Paid $2,500 cash on accounts payable.|
|3.||Recognized revenue of $8,700, of which $2,100 is collected in cash and the balance is due in September.|
|4.||Purchased additional equipment for $2,500, paying $500 in cash and the balance on account.|
|5.||Paid salaries $2,200, rent for August $1,200, and advertising expenses $450.|
|6.||Withdrew $800 in cash for personal use.|
|7.||Received $1,700 from Standard Federal Bank—money borrowed on a note payable.|
Incurred utility expenses for month on account $370.
QUESTIONS PLEASE SEE ATTACHMENT