Required:

Prepare the corrected finacial statements for Susan Huang.

Susan Huang began the practice of law October 1, 2020, with an initial investment of $19,400 in cash. She made no withdrawals during the month. After completing the first month of practice, the financial statements were prepared by Ryan Player, the secretary/bookkeeper Ms. Huang had hired. Ms. Huang almost burst out laughing when she saw them. She had completed a course in legal accounting in law school and knew the statements prepared by Player left much to be desired. Consequently, she asked you to revise the statements. The Player version is presented as follows: Assets Cash Furniture Supplies expense Accounts payable Rent expense Supplies Susan Huang, Lawyer Balance Sheet October 31, 2020 Liabilities and Equity $ 5,100 Susan Huang, capital $19,400 5,500 1,130 1.530 4,150 1,990 $19,400 $19,400 Susan Huang, Lawyer Income Statement For Month Ended October 31, 2029 Revenues : Legal revenue $16,400 Accounts receivable 6,700 $23,100 Expenses : Salaries expense $ 3,900 Telephone expense 215 Law library 8,645 12,760 Profit $10,340