DAC2014 Principles of Accounts Tutorial 1 Question P1-2A Judi Salem opened a law office on July 1, 2017. On July 31, the Statement of Financial Position (Balance Sheet) showed the following balances: Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment $6,000, Accounts Payable $4,200 and Owner's Capital $8,800. During August, the following transactions occurred: 1. Collected $1,200 of accounts receivable. 2. Paid $2,800 cash on accounts payable. 3. Recognised revenue of $7,500 of which $3,000 is collected in cash and the balance is 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. 6. Withdrew $700 in cash for personal use. 7. Received $2,000 fro Standard Federal Bank - money borrowed on a note payable. 8. Incurred utility expenses for month on account $270. Required: a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner's Capital - Owner's Drawings + Revenue - Expenses. b) From the tabular analysis, prepare i. a Statement of Income for the month ended 31 August 2017, ii. an Owner's Equity Statement for the month ended 31 August 2017, and iii. a Statement of Financial Position as at 31 August 2017