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Margaret Moore opened a law office on July 1, 2020. On July 31, the balance sheet showed Cash $5,900, Accounts Receivable $2,000, Supplies $500, Equipment
Margaret Moore opened a law office on July 1, 2020. On July 31, the balance sheet showed Cash $5,900, Accounts Receivable $2,000, Supplies $500, Equipment $6,100, Accounts Payable $4,300, and Owners Capital $10,200. During August, the following transactions occurred.
1. | Collected $1,700 of accounts receivable. | |
2. | Paid $2,700 cash on accounts payable. | |
3. | Recognized revenue of $7,600, of which $3,200 is collected in cash and the balance is due in September. | |
4. | Purchased additional equipment for $2,200, paying $400 in cash and the balance on account. | |
5. | Paid salaries $2,500, rent for August $1,000, and advertising expenses $400. | |
6. | Withdrew $700 in cash for personal use. | |
7. | Received $1,200 from Standard Federal Bankmoney borrowed on a note payable. | |
8. | Incurred utility expenses for month on account $350. |
Prepare a balance sheet at August 31. (List Assets in order of liquidity.)
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