Sharon Lee opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $5,500, Accounts Receivable $1,800, Supplies $500. Equipment $6,200, Accounts Payable $4,200, and Owner's Capital $9,800. During August, the following transactions occurred 1. 2. 3. 4. Collected $1.500 of accounts receivable, Paid $2,500 cash on accounts payable. Recognized revenue of $7.400 of which $1,700 is collected in cash and the balance is due in September Purchased additional equipment for $2,000, paying $300 in cash and the balance on account. Paid salaries $2,600, rent for August $1,000, and advertising expenses $350. Withdrew $1.100 in cash for personal use. Received $1.700 from Standard Federal Bank-money borrowed on a note payable. 5. 6. 7. 8. Incurred utility expenses for month on account $330. Assets Cash Accounts Receivable Supplies Eq Bal. $ 5,500 1,800 $ 500 1. 1,500 2,500 2. 3. 1,700 5,700 i 4. 300 1 5. 3,950 6. 1.100 7. 1,700 8. 500 $ $ $ 6,000 $ 2,550 SHARON LEE, ATTORNEY AT LAW Liabilities Notes Payable Equipment Accounts Payable Own: Capi $ 6,200 i i i i 1 2,000 1 i i S $ 8.200 $ Owner's Equity Owner's Capital Owner's Drawings Revenues Expi $ $ i 1 i i i 1 i i i i i i E $ $ Expenses Me M. Me ME M