Sonya Jared opened a law offi ce on July 1, 2020, On July 31, the Balance Sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment S6,000, Accounis 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 accunt $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.
Sonya Jared opened a law offi ce on July 1, 2020, On July 31, the Balance Sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment S6,000, Accounis 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 accunt $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.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements
Section: Chapter Questions
Problem 4PB: On July 1, K. Resser opened Ressers Business Services. Ressers accountant listed the following chart...
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