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Susan Crawford created a corporation providing legal services, Susan Crawford Inc., on July 1, 2022. On July 31 the balance sheet showed Cash $3,760, Accounts
Susan Crawford created a corporation providing legal services, Susan Crawford Inc., on July 1, 2022. On July 31 the balance sheet showed Cash $3,760, Accounts Receivable $2,350, Supplies $470, Equipment $4,700, Accounts Payable $3,948, Common Stock $5,828, and Retained Earnings $1,504. During August, the following transactions occurred. Aug. 1 4 Collected $1,034 of accounts receivable due from customers. Paid $2,538 cash for accounts payable due. 9 Performed services worth $5,076, of which $3,384 is collected in cash and the balance is due in September. 22222 15 Purchased additional office equipment for $3,760, paying $658 in cash and the balance on account. 19 Paid salaries $1,316, rent for August $658, and advertising expenses $329. 23 Paid a cash dividend of $658. 26 31 Borrowed $4,700 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $360. (a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. Include margin explanations for any changes in revenues or expenses. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Post entries in the order presented in the question.)
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