P1.2A (LO 4,5) Financial Statement Sonya Jared opened a law office on July 1, 2020. On July 31, the balance sheet showed

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P1 2a Lo 4 5 Financial Statement Sonya Jared Opened A Law Office On July 1 2020 On July 31 The Balance Sheet Showed 1 (52.05 KiB) Viewed 18 times

P1.2A (LO 4,5) Financial Statement Sonya Jared opened a law office on July 1, 2020. On July 31, the balance sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment $6,000, Accounts Payable $4,200, and Owner's Capital $8,800. During August, the following transactions occurred. 1. Collected $1,200 of accounts receivable. 2. Paid $2,800 cash on accounts payable. 3. Recognized revenue of $7,500 of which $4,000 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $2,000, paying $400 in cash and the balance on account 5. Paid salaries $2,800, rent for August $900, and advertising expenses $400. 6. Withdrew $700 in cash for personal use. 7. Received $2,000 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account $270. Instructions a. Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner's Capital - Owner's Drawings + Revenues - Expenses. b. Prepare an income statement for August, an owner's equity statement for August, and a balance sheet at August 31.