1.The following information relates to Wildhorse Co. for the year 2020.

Owners capital, January 1, 2020		$71,362		Advertising expense		$ 2,676
Owners drawings during 2020		8,920		Rent expense		15,462
Service revenue		94,554		Utilities expense		4,609
Salaries and wages expense		43,858

2.

Ruth Lewis opened a law office on July 1, 2020. On July 31, the balance sheet showed Cash $5,000, Accounts Receivable $1,700, Supplies $500, Equipment $5,700, Accounts Payable $3,600, and Owners Capital $9,300. During August, the following transactions occurred.

1.		Collected $1,400 of accounts receivable.
2.		Paid $2,800 cash on accounts payable.
3.		Recognized revenue of $7,700, of which $2,500 is collected in cash and the balance is due in September.
4.		Purchased additional equipment for $2,100, paying $500 in cash and the balance on account.
5.		Paid salaries $1,700, rent for August $1,100, and advertising expenses $350.
6.		Withdrew $700 in cash for personal use.
7.		Received $1,600 from Standard Federal Bankmoney borrowed on a note payable.
8.		Incurred utility expenses for month on account $180.