Sarah Allen opened a law office on July 1, 2020. On July 31, the balance sheet showed Cash $5,600, Accounts Receivable $1,800, Supplies $600, Equipment $6,200, Accounts Payable $3,500, and Owner's Capital $10,700. During August, the following transactions occurred. 1. 2. 3. 4. Collected $1,500 of accounts receivable. Paid $2,400 cash on accounts payable. Recognized revenue of $7,300, of which $2,700 is collected in cash and the balance is due in September. Purchased additional equipment for $2,100, paying $400 in cash and the balance on account. Paid salaries $2,500, rent for August $1,100, and advertising expenses $450. Withdrew $1,100 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 $350. 5. 6. 7. 8. (a) Prepare a tabular analysis 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. See Illustration 1-8 for example.)