Analyze transactions and P1-2A Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet prepare income statement, showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment $6,000, owner's equity statement, and Accounts Payable $4,200, and Owner's Capital $8,800. During August, the following trans- balance sheet. actions occurred. (LO 3, 4, 5) 1. Collected $1,200 of accounts receivable. 2. Paid $2,800 cash on accounts payable. 3. Recognized revenue of $7,500 of which $3,000 is collected in cash and the balance is XLS due in September. 4. Purchased additional equipment for $2,000, paying $400 in cash and the balance on account. 5. Paid salaries $2,500, rent for August $900, and advertising expenses $400. Problems: Set A 41 6. Withdrew $700 in cash for personal use. 7. Received $2,000 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account $270