Legal Services Company was incorporated on July 1, 2011. During the first month of operations, the following transactions occurred.

1. Shareholders invested

$10.000

in cash in exchange for ordinary shares of Legal Services Company.

2. Paid

$800

for July rent on office space.

3. Purchased office equipment on account

$3.000

4. Provided legal services to clients for cash

$1.500

5. Borrowed

$700

cash from a bank on a note payable.

6. Performed legal services for client on account

$2.000

7. Paid monthly expense:

Salaries

$500

Utilities

$300

Telephone

$100

Prepare the income statement, retained earnings statement, and statement of financial position at July 31 for Legal Services Company.