Linda Williams Opened A Law Office On July 1 2022 On July 31 The Balance Sheet Showed Cash 5 600 Accounts Receivabl 1 (24.14 KiB) Viewed 20 times
Linda Williams Opened A Law Office On July 1 2022 On July 31 The Balance Sheet Showed Cash 5 600 Accounts Receivabl 2 (58.97 KiB) Viewed 20 times
Linda Williams opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $5,600, Accounts Receivable $1.500. Supplies $500, Equipment $6,400, Accounts Payable $3,500, and Owner's Capital $10,500. During August, the following transactions occurred. 1. Collected $1,200 of accounts receivable. 2. Paid $2,400 cash on accounts payable. 3. Recognized revenue of $7,100 of which $3,200 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 $2.500, rent for August $1,000, and advertising expenses $400. 6. Withdrew $700 in cash for personal use. 7. Received $1,900 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account $230.
(a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. (If a transaction results in a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.) Assets Accounts Cash Receivable Supplies Equipm Bal. $ 1 2 34 5. 6. 7. 8. $ $ $ $ S $ $
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