On July 31, 2021, the general ledger ofBlossomInc. showed these balances: Cash $3,600; Accounts Receivable $1,500; Supplies $900; Equipment $4,900; Accounts Payable $4,100; Common Shares $3,000; and Retained Earnings $3,800. During August, the following transactions occurred:

Aug.2

Collected $1,000of accounts receivable due from customers.

3

Received $1,100for issuing common shares to new investors.

6

Paid $2,800on accounts payable owing.

7

Earned fees of $6,900, of which $3,200was collected in cash and the remainder was due on account.

13Purchased additional equipment for $1,400, paying $300in cash and the balance on account.

17Paid salaries, $3,700, rent, $800, and advertising expenses, $275, for the month of August.

17Collected the balance of the fees earned on August 7.

20

Declared and paid $500of dividends to shareholders.22Billed a client $1,000for legal services provided.

24Received $2,200from Laurentian Bank; the money was borrowed on a bank loan payable that is due in six months.

27Signed an engagement letter to provide legal services to a client in September for $4,500.

28

Received the utility bill for the month of August in the amount of $275; it is due September 15.

31

Paid income tax for the month, $500.

(a)

Beginning with the July 31 balances, prepare an equation analysis of the effects of the opening balances and above transactions on the expanded accounting equation.(If a transaction causes a decrease in Assets, Liabilities or Shareholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3.2 for example.)