4.35/20 View Policies Show Attempt History Current Attempt in Progress Dorothy Taylor opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $5,900, Accounts Receivable $1,800, Supplies $400, Equipment $6,400, Accounts Payable $4,300, and Owner's Capital $10,200. During August, the following transactions occurred. 1. Collected $1,500 of accounts receivable. 2. Paid $2,700 cash on accounts payable. 3. Recognized revenue of $7,700 of which $2,800 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $1,700, paying $300 in cash and the balance on account. 5. Paid salaries $1,900, rent for August $1,100, and advertising expenses $350. 6. Withdrew $700 in cash for personal use. 7. Received $1,900 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account $280. Bal. $ 1. Cash Assets Accounts Receivable Supplies 5.900 $ 1,800) $ 1,500 2 2.700 -1.500 0 3. 2,800 4,900 -300 Equ 400 $ i 0 0 5. -3,350 0 6. -700 7. 8. 1,900 0 5.200 400 $ 5,050 Equipment DOROTHY TAYLOR, ATTORNEY AT LAW Liabilities 4.35/20 Notes Payable 6,400 0 0 0 0 1,700 Accounts Payable 4,300 -2,700 i O i 1,400 0 0 0 0 1,900 0 280 Owner's Capital 10 8.100 1.900 $ 3.280 $ 10. Owner's Capital 10,200 Owner's Drawings Owner's Equity 0 Revenues 0 1 i D 7,700 i Expenses 0 3.35 0 (700) 10.200 D C700) $ 7700 1363 Prepare an income statement for August. DOROTHY TAYLOR, ATTORNEY AT LAW Income Statement $ R