Question 1 On July 31, 2017, the general ledger of Larkspur, Inc. showed the following balances: Cash $4,880, Accounts Receivable $1,830, Supplies $610, Equipment $6,100, Accounts Payable $5,000, Common Stock $4,270, and Retained Earnings $4,150. During August, the following transactions occurred. Aug. 3 Collected $1,460 of accounts receivable due from customers 5 Received $1,590 cash for issuing common stock to new investors. 6 Paid $3,290 cash on accounts payable. 7 Performed legal services of $7,930, of which $3,660 was collected in cash and the remainder was due on account. 12 Purchased additional equipment for $1,460, paying $490 in cash and the balance on account. 14 Paid salaries $4,270, rent $1,100, and advertising expenses $335 for the month of August. 18 Collected the balance for the services performed on August 7. 20 Paid dividends of $610 to stockholders. 24 Blled a client $1,220 for legal services performed 26 Received $2,440 from Laurentian Bank; the money was borrowed on a bank note payable that is due in 6 months. 27 Agreed to perform legal services for a client in September for $5,490The client will pay the amount owing after the services have been performed. 28 Received the utility bill for the month of August in the amount of $335; it is not due until September 15. 31 Paid income tax for the month $610