Legal Services Inc. was incorporated on July 1, 2014. During the first month of operations, the following transactions occurred.
1. Stockholders invested $10,000 in cash in exchange for common stock of Legal Services Inc.
2. Paid $800 for July rent on office space.
3. Purchased office equipment on account $3,000.
4. Provided legal services to clients for cash $1,500.
5. Borrowed $700 cash from a bank on a note payable.
6. Performed legal services for client on account $2,000.
7. Paid monthly expenses: salaries $500, utilities $300, and advertising $100.
Instructions

(a) Prepare a tabular summary of the transactions.

(b) Prepare the income statement, retained earnings statement, and balance sheet at July 31 for Legal Services Inc.