oblem 1-2A Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $5,300,...
fsbezra_goblem 1-2A
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. | |
8. | Incurred utility expenses for month on account $270.
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