Jenny Brown opened a law office, on July 1, 2010. On July 31, the balance sheet showed

Cash $5,000, Accounts Receivable $1,500, Supplies $500, Office Equipment $6,000, Accounts

Payable $4,200, and Jenny Brown, Capital $8,800. During August the following transactions occurred.

must be answered in this order: Assets = Liability + Equity + R/E + [Revenue - Expenses]

P1-2B Jenny Brown opened a law office, on July 1,2010 . On July 31 , the balance sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Office Equipment $6,000, Accounts Payable $4,200, and Jenny Brown, 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. Earned revenue of $8,000 of which $3,000 is collected in cash and the balance is due in September. 4. Purchased additional office 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 $1,500 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account $220