Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $6,000, Accounts Receivable $1,500, Supplies $400, Equipment $5,500, Accounts Payable $4,500, and Owner's Capital $8,900. During August, the following transactions occurred.

1.Collected $1,200of accounts receivable.2.Paid $2,400cash on accounts payable.3.Recognized revenue of $8,800, of which $2,800is collected in cash and the balance is due in September.4.Purchased additional equipment for $1,900, paying $400in cash and the balance on account.5.Paid salaries $2,700, rent for August $1,000, and advertising expenses $400.6.Withdrew $700in cash for personal use.7.Received $2,000from Standard Federal Bank?money borrowed on a note payable.8.Incurred utility expenses for month on account $200.

V (b2) Prepare an owner's equity statement for August. (List items that increase owner's equity first.) JUDI SALEM, ATTORNEY AT LAW Owner's Equity Statement 4} $ A A V V A A V Y 4} +- Prepare a balance sheet at August 31. (List Assets in order of liquidity.) JUDI SALEM, ATTORNEY AT LAW Balance Sheet Assets $ Liabilities and Owner's Equity