Question $4$ of $5$

Mary Salem opened a law office on July $1,2022.$ On July $31,$ the balances in the accounts were as follows: Cash $$4,000,$ Accounts Receivable $$1,000,$ Supplies $$400,$ Equipment $$5,000,$ Accounts Payable $$4,000,$ and Owner's Capital $$6,400.$ During August, the following transactions occurred.

Collected $$1,000$ of accounts receivable.

Paid $$2,000$ cash on accounts payable.

Recognized revenues of $$6,500$ of which $$3,000$ is collected in cash and the balance is due in September.

Purchased additional equipment for $$2,000,$ paying $$400$ in cash and the balance on account.

Paid salaries $$2,000,$ rent for August $$900,$ and advertising expenses $$400.$

Withdrew $$700$ in cash for personal use.

Received $$2,000$ from Standard Federal Bank$-$money borrowed on a note payable.

Incurred utility expenses for month on account $$270.$

$($a$)$

Your answer is partially correct.

Prepare a tabular summary of the August transactions beginning with July $31$ balances. $($If a transaction results in a decrease in Assets, Liabilities or Owner's Equity, place a negative sign $($or parentheses$)$ in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.$)$