Blossom Co. opened on July 1, 2020. On July 31, the statement of financial position showed Cash 5,300, Accounts Receivable 1,600, Supplies 600, Equipment 6,100, Accounts Payable 3,600, Share Capital-Ordinary 2,800, and Retained Earning of 7,200 (amounts in thousands). During August, the following transactions occurred. 1. Collected 1,300 of accounts receivable. 2. Paid 2,600 cash on accounts payable. 3. Recognized revenue of 7,800, of which 2,100 is collected in cash and the balance is due in September. 4. Purchased additional equipment for 1,500, paying 500 in cash and the balance on account. 5. Paid salaries 2,700, rent for August 1,100, and advertising expenses 450. 6. Declared and paid 800 dividend. 7. Received 1,800 from Standard Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account 330. Prepare a tabular analysis of the August transactions beginning with July 31 balances. (If a transaction results in a decrease in Assets, Liabilities or Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1.9 for example.) Bal. 1. 2. 3. 4. 5. 6. 7. 8. Assets Accounts Cash Receivable Supplies Equ Prepare an income statement for August. BLOSSOM, ATTORNEY AT LAW Income Statement Prepare an retained earnings statement for August. (List items that increase retained earnings statement first.) BLOSSOM, ATTORNEY AT LAW Retained Earnings Statement Prepare a statement of financial position at August 31. (List Assets in reverse order of liquidity.) BLOSSOM, ATTORNEY AT LAW Statement of Financial Position Assets Equity and Liabilities