energy

PROBLEM #2

Sue Kojima opened a law office on July 1, 2014. On July 31, the balance sheet showed Cash $5,470, Accounts Receivable $1,720, Supplies $470, Equipment $5,970, Accounts Payable $4,290, and Owner’s Capital $9,340. During August, the following transactions occurred.

1. Collected $1,500 of accounts receivable.

2. Paid $2,620 cash on accounts payable.

3. Recognized revenue of $8,475, of which $2,225 is collected in cash and the balance is due in September.

4. Purchased additional equipment for $2,000, paying $370 in cash and the balance on account.

5. Paid salaries $1,738, rent for August $1,146, and advertising expenses $289.

6. Withdrew $799 cash for personal use.

7. Received $1,149 from Standard Federal Bank—money borrowed on a note payable.

8. Incurred utilities expenses for month on account $253.