Reference no: EM132998790

Carol Garcia opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $ 5,900, Accounts Receivable $ 1,800, Supplies $ 600, Equipment $ 5,600, Accounts Payable $ 3,900, and Owner's Capital $ 10,000.

During August, the following transactions occurred.

1. Collected $ 1,500 of accounts receivable.

2. Paid $ 2,600 cash on accounts payable.

3. Recognized revenue of $ 7,500 of which $ 3,000 is collected in cash and the balance is due in September.

4. Purchased additional equipment for $ 1,900, paying $ 500 in cash and the balance on account.

5. Paid salaries $ 1,900, rent for August $ 1,000, and advertising expenses $ 300.

6. Withdrew $ 1,000 in cash for personal use.

7. Received $ 1,000 from Standard Federal Bank-money borrowed on a note payable.

8. Incurred utility expenses for month on account $ 230.

Question 1: Prepare a tabular analysis of the August transactions beginning with July 31 balances.

Question 2: Prepare an income statement for August.

Question 3: Prepare an owner's equity statement for August.

Question 4: Prepare a balance sheet at August 31.