Problem 1-02A a,b1-b3 (Video)

Jennifer Davis opened a law office on July 1, 2020. On July 31, the balance sheet showed Cash $5,100, Accounts Receivable $1,700, Supplies $400, Equipment $5,800, Accounts Payable $4,100, and Owners Capital $8,900. During August, the following transactions occurred.

1.		Collected $1,400 of accounts receivable.
2.		Paid $2,700 cash on accounts payable.
3.		Recognized revenue of $7,900, of which $3,100 is collected in cash and the balance is due in September.
4.		Purchased additional equipment for $2,300, paying $400 in cash and the balance on account.
5.		Paid salaries $1,800, rent for August $1,200, and advertising expenses $450.
6.		Withdrew $900 in cash for personal use.
7.		Received $1,100 from Standard Federal Bankmoney borrowed on a note payable.
8.		Incurred utility expenses for month on account $270.

Prepare a tabular analysis of the August transactions beginning with July 31 balances. (If a transaction results in a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)

JENNIFER DAVIS, ATTORNEY AT LAW
		Assets							=	Liabilities			+	Owners Equity
		Cash	+	Accounts Receivable	+	Supplies	+	Equipment	=	Notes Payable	+	Accounts Payable	+	Owners Capital		Owners Drawings	+	Revenues		Expenses
Bal.		$		$		$		$		$		$		$		$		$		$
1.
2.
3.
4.
5.
6.
7.
8.
		$		$		$		$	=	$		$		$		$		$		$

Prepare an income statement for August.

Prepare an owners equity statement for August.

Prepare a balance sheet at August 31.