Sonya Jared opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment $6,000, Accounts Payable $4,200, and Owner's Capital $8,800. During August, the following transactions occurred. Collected $1.200 of accounts receivable. Paid $2.800 cash on accounts payable. 3. Recognized revenue of $7.500 of which $4,000 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $2.000, paying $400 in cash and the balance on account. 5. Paid salaries $2,800, rent for August $900, and advertising expenses $400. 6. Withdrew $700 in cash for personal use. Received $2,000 from Standard Federal Bank-money borrowed on a note payable. 8 8. Incurred utility expenses for month on account $270. SONYA JARED, ATTORNEY AT LAW Income Statement For the Month Ended August 31, 2022 Revenues Service Revenue $ 6,500 Expenses LA 500 Advertising Expense Rent Expense 1.600 200 Gasoline Expense 150 Utilities Expense 2.450 Total Expenses $ 4,050 Net Income /(Loss)