Michelle Walker opened a law office on July 1, 2020. On July 31, the balance sheet showed Cash $5,300, Accounts Receivable $2,000, Suppies SSW Equa and Owner's Capital $10,400. During August, the following transactions occurred. Recognized revenue of $7,300, of which $2,900 is collected in cash and the balance is due in September.. 1. Collected $1,700 of accounts receivable. 2 Paid $2,400 cash on accounts payable. 3. 4. 5. Paid salaries $2,300, rent for August $1,200, and advertising expenses $450 6 Purchased additional equipment for $2,100, paying $300 in cash and the balance on account. Wehdrew $800 in cash for personal use. 7. Received $1,900 from Standard Federal Bank-money borrowed on a note payable. B. Incurred utility expenses for month on account $230. Owner's Equity place a negative sign