***4 STEP QUESTION***

SandraRobinsonopened a law office on July 1, 2020. On July 31, the balance sheet showed Cash $5,200, Accounts Receivable $1,700, Supplies $500, Equipment $5,500, Accounts Payable $4,200, and Owner's Capital $8,700. During August, the following transactions occurred.

1.Collected $1,400of accounts receivable.2.Paid $2,900cash on accounts payable.3.Recognized revenue of $8,800, of which $2,700is collected in cash and the balance is due in September.4.Purchased additional equipment for $1,500, paying $400in cash and the balance on account.5.Paid salaries $1,900, rent for August $1,200, and advertising expenses $300.6.Withdrew $700in cash for personal use.7.Received $1,400from Standard Federal Bankmoney borrowed on a note payable.8.Incurred utility expenses for month on account $300.

Also, an income statement for August.

& an owner's equity statement for August.(List items that increase owner's equity first.)

& a balance sheet at August 31.(List Assets in order of liquidity.)