Debra King opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $6,000, Accounts Receivable $1,900, Supplies $600, Equipment $6,400, Accounts Payable $4,100, and Owner's Capital $10,800. During August, the following transactions occurred. 1. Collected $1,600 of accounts receivable. 2 Paid $2,700 cash on accounts payable. 3. Recognized revenue of $7,500 of which $3,300 is collected in cash and the balance is due in September 4. Purchased additional equipment for $2,400, paying $500 in cash and the balance on account. 5. Paid salaries $2,000, rent for August $1,100, and advertising experises $350. 6. Withdrew $700 in cash for personal use. 7 Received $1,900 from Standard Federal Bank-money borrowed on a note payable. B Incurred utility expenses for month on account $270. Prepare an income statement for August. DEBRA KING, ATTORNEY AT LAW Income Statement For the Month Ended August 31, 2022