Juanita Pierre opened a law office, on July 1, 2012, On Luly 31, the balance sheet showed Cash $5,000, Accounts Receivalbe $1,500,, Suplies $500, Equipment %6,000, Accounts Payable$4,200,and Owner's Capital $8,800. During August, the following transactins occurred.
1-Collected $1,200 of accounts receivable.2-Paid $2,800 cash on accounts payable.
3-Earned revenue of $7,500 of which $3,000i is collected in cash and the balance is due in September.4-Purchased additional office equipment for $2,000,paying $400 in cash and the balance on account.5-Paid salaries $2,500,rent for August $900, and advertising expenses $400. 6-Withdrew $700 in cash for personal use. 7-Received $2,000from standard Federal Bank-money borrowed on a note payable.8-Incurred utility exenses for month on account $270.Instructions(a)Prepare a tabular analysis of the August transactions beginnning 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.