Reference no: EM133101296
Question - Michelle Walker opened a law office on July 1, 2020. On July 31, the balance sheet showed Cash $5,300, Accounts Receivable $2,000, Supplies $500, Equipment $6,100, Accounts Payable $3,500, and Owner's Capital $10,400. During August, the following transactions occurred.
1. Collected $1,700 of accounts receivable.
2. Paid $2,400 cash on accounts payable.
3. Recognized revenue of $7,300, of which $2,900 is collected in cash and the balance is due in September.
4. Purchased additional equipment for $2,100, paying $300 in cash and the balance on account.
5. Paid salaries $2,300, rent for August $1,200, and advertising expenses $450.
6. Withdrew $800 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.
Required - Prepare a tabular analysis of the August transactions beginning with July 31 balances.