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Problem 1-2A (Part Level Submission)
Judi Salem opened a law office on July 1, 2017. On July 31, the
balance sheet showed Cash $6,000, Accounts Receivable
$1,600, Supplies $400, Equipment $6,000, Accounts Payable
$4,000, and Owner’s Capital $10,000. During August, the
following transactions occurred.
1.
Collected $1,300 of accounts receivable.
2.
Paid $2,500 cash on accounts payable.
3.
Recognized revenue of $8,700, of which $2,100 is collected in
cash and the balance is due in September.
4.
Purchased additional equipment for $2,500, paying $500 in cash
and the balance on account.
5.
Paid salaries $2,200, rent for August $1,200, and advertising
expenses $450.
6.
Withdrew $800 in cash for personal use.
7.
Received $1,700 from Standard Federal Bank—money borrowed
on a note payable.
8.
Incurred utility expenses for month on account $370.
QUESTIONS PLEASE SEE ATTACHMENT
Problem 1-2A (Part Level Submission)Judi Salem opened a law office.docx

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Problem 1-2A (Part Level Submission)Judi Salem opened a law office.docx

  • 1. Problem 1-2A (Part Level Submission) Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $6,000, Accounts Receivable $1,600, Supplies $400, Equipment $6,000, Accounts Payable $4,000, and Owner’s Capital $10,000. During August, the following transactions occurred. 1. Collected $1,300 of accounts receivable. 2. Paid $2,500 cash on accounts payable. 3. Recognized revenue of $8,700, of which $2,100 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $2,500, paying $500 in cash and the balance on account. 5. Paid salaries $2,200, rent for August $1,200, and advertising expenses $450. 6. Withdrew $800 in cash for personal use. 7. Received $1,700 from Standard Federal Bank—money borrowed on a note payable. 8. Incurred utility expenses for month on account $370. QUESTIONS PLEASE SEE ATTACHMENT