Lisa Anderson opened a law office on July 1, 2020. On July 31, the balance sheet showed Cash $5,800, Accounts Receivable $1,600, Supplies $600, Equipment $5,500, Accounts Payable $3,500, and Owner's Capital $10,000. During August, the following transactions occurred. 1. 2. 3: 4 Collected $1.300 of accounts receivable. Paid $2.700 cash on accounts payable. Recognized revenue of $7,300, of which $1.500 is collected in cash and the balance is due in September Purchased additional equipment for $1.500, paying $400 in cash and the balance on account. Paid salaries $2,300, rent for August $1,000, and advertising expenses $350. Withdrew $700 in cash for personal use. Received $1,800 from Standard Federal Bank-money borrowed on a note payable, Incurred utility expenses for month on account $180. 5. 6. 7. 8. Prepare an income statement for August. LISA ANDERSON, ATTORNEY AT LAW Income Statement For the Month Ended August 31, 2020 Revenues Rent Revenue 7300 Expenses Salaries and Wages Expense $ Rent Revenue Advertising Expense Utilities Expense Total Expenses Net Income /(Loss)