Karen White opened a law office on July 1, 2022. On July 31, the balance sheet showed $6,000, Accounts Receivable $1,500, Supplies $400, Equipment $5,500, Accounts Payable $4,500, and Owner's Capital $8,900. During August, thr following transactions occurred.

PLEASE PREPARE AN INCOME STATEMENT FOR AUGUST

Question 9 of 11 22.38/955 KAREN WHITE, ATTORNEY AT LAW Income Statement For the Month Ended August 31, 2022 Karen White opened a law office on July 1, 2022. 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 2 3. Collected $1,200 of accounts receivable. Paid $2,400 cash on accounts payable. Recognized revenue of $8,800 of which $2,800 is collected in cash and the balance is due in September Purchased additional equipment for $1,900, paying $400 in cash and the balance on account. Paid salaries $2,700, rent for August $1,000, and advertising expenses $400. Withdrew $700 in cash for personal use. 4 5 6. 2 Received $2,000 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account $200