Mary Smith opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $ 5,000, Accounts Receivable $ 1,500, Supplies $ 400, Equipment $ 5,500, Accounts Payable $ 3,500, and Owner's...


Mary Smith opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $ 5,000, Accounts Receivable $ 1,500,<br>Supplies $ 400, Equipment $ 5,500, Accounts Payable $ 3,500, and Owner's Capital $ 8,900. During August, the following transactions<br>occurred.<br>1.<br>Collected $ 1,200 of accounts receivable.<br>2.<br>Paid $ 2,400 cash on accounts payable.<br>3.<br>Recognized revenue of $ 6,800 of which $ 1,500 is collected in cash and the balance is due in September.<br>4.<br>Purchased additional equipment for $ 1,500, paying $ 300 in cash and the balance on account.<br>5.<br>Paid salaries $ 1,700, rent for August $ 1,000, and advertising expenses $ 250.<br>6.<br>Withdrew $ 700 in cash for personal use.<br>7.<br>Received $ 1,000 from Standard Federal Bank-money borrowed on a note payable.<br>Incurred utility expenses for month on account $ 170.<br>8.<br>

Extracted text: Mary Smith opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $ 5,000, Accounts Receivable $ 1,500, Supplies $ 400, Equipment $ 5,500, Accounts Payable $ 3,500, and Owner's Capital $ 8,900. 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 $ 6,800 of which $ 1,500 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $ 1,500, paying $ 300 in cash and the balance on account. 5. Paid salaries $ 1,700, rent for August $ 1,000, and advertising expenses $ 250. 6. Withdrew $ 700 in cash for personal use. 7. Received $ 1,000 from Standard Federal Bank-money borrowed on a note payable. Incurred utility expenses for month on account $ 170. 8.
Prepare an owner's equity statement for August. (List items that increase owner's equity first.)<br>MARY SMITH, ATTORNEY AT LAW<br>Owner's Equity Statement<br>Less<br>Add<br>$<br>%24<br>><br>><br>

Extracted text: Prepare an owner's equity statement for August. (List items that increase owner's equity first.) MARY SMITH, ATTORNEY AT LAW Owner's Equity Statement Less Add $ %24 > >

Jun 09, 2022
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