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. 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 S300 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. 4 5. 6. 7 Received $1.700 from Standard Federal Bank-money borrowed on a note payable. 8. incurred utility expenses for month on account $330. Assets Cash Accounts Receivable Supplies Eq Bal. $ 5,500 1,800 $ SA 500 1. 1,500 (1.500) 2. (2,500) i 3. 1,700 5.700 4. (300) i 5. (3,950) 6. (1.100) 7. 1.700 8. 0 2,550 6,000 $ 500 SHARON LEE, ATTORNEY AT LAW Liabilities Equipment Notes Payable Accounts Payable Own Cap $ 6.200 $ i $ 4,200 $ i i i i (2.500) i i 2,000 1.700 i i 1,700 i i i 330 $ 8.200 $ 1,700 3,730 $ Owner's Equity Owner's Capital Owner's Drawings Revenues Expe $ 9,800 1 $ i i i 7.400 i i -1.100 i i 9,800 - 1.100 $ 7,400 Owner's Equity Owner's Drawings Revenues Expenses 300 $ $ $ $ ME i 7,400 - 1.100 i 9,800 $ - 1.100 7.400