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. Purchased additional equipment for $ 1,500, paying $ 300 in cash and the balance on account. 4. 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 on a note payable. 8. . Incurred utility expenses for month on account $ 170. MARY SMITH, ATTORNEY AT LAW Income Statement For the Month Ended August 31, 2022 V Revenues Service Revenue $ 8,800 Expenses Salaries and Wages Expense $ 2,700 Rent Expense 1,000 i Advertising Expense 400 Utilities Expense 200 Total Expenses 4,300 Net Income /(Loss) V $ 4,500