Cecil Jameson, who is a lawyer, has a corporation called CJ Law. On July $1,20$Y$4,$ the company has the following assets, liabilities, and common stock: cash, $$1,000$; accounts receivable, $$3,200$; supplies, $$850$; land, $$10,000$; accounts payable, $$1,530$; common stock, $$10,000.$ It is currently leasing office space and equipment, pending construction of an office complex on land acquired last year.

Commercial transactions during July are summarized below:

$1.$ Cash received from clients for services, $$3,928.$

$2.$ Creditors paid, $$1,055.$

$3.$ He invested an additional $$3,700$ in the company in exchange for common stock.

$4.$ Office rent paid per month, $$1,200.$

$5.$ They charged clients for legal services on credit, $$2,025.$

$6.$ Supplies purchased on credit, $$245.$

$7.$ Received cash from clients who owed him $$3,000.$

$8.$ Received invoice for paralegal services from Legal Aid Inc. for July $($due August $10),$ $$1,635.$

$9.$ Paid the following: salary expenses, $$850$; utility expenses, $$325$; answering service expenses, $$250$; and miscellaneous expenses, $$75.$

$10.$ The cost of available supplies was determined to be $$980$; therefore, the cost of supplies used during the month was $$115.$

$11.$ Dividends paid, $$1,000.$

Instructions:

$1.$ List the assets, liabilities, and equity as of July $1$ in a manner similar to that shown in this chapter. In the equation table, indicate the increases and decreases resulting from each transaction and the final balance of the transactions.

$2.$ Prepare an income and expense statement, a statement of equity, and a balance sheet as of July $31,20$Y$4.$