Mary Smith opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $400, Equipment $5,500, Accounts Payable $3,500, and Owner's Capital $8,900. During August, the following transactions occurred. 1. Collected $1,200 of accounts receivable. 2. Paid $2,400 cash on accounts payable. 3. Recognized revenue of $6,800 of which $1,500 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $1,500, paying $300 in cash and the balance on account. 5. Paid salaries $1,700, rent for August $1,000, and advertising expenses $250. 6. Withdrew $700 in cash for personal use. 7. Received $1,000 from Standard Federal Bank-money borrowed orti note payable. 8. Incurred utility expenses for month on account $170. MARY SMITH, ATTORNEY AT LAW Owner's Equity Statement For the Month Ended August 31, 2022 Owner's Capital, August 1