Tari Westfield opens an engineering firm on August 1, 2021 and reports the following transactions during the first month of operations:

1. Incorporates her business and invests $10,000 in exchange for common stock.
2. Invoices a client $11,000 for services rendered in August.
3. Purchases a vehicle for $8,000 with a down payment of $3,000.
4. Receives a phone bill from Verizon for $500.
5. Pays $1,000 in office rent.
6. Secures a $24,000 one-year loan from Chase Bank.
7. Receives $1,000 from a client. Riggs will provide the services in May 2023.

Instructions

1. Journalize the transactions in good form.

2. Assuming all transactions have been accurately posted to Westfields general ledger, detemine the balance in the cash account and whether the balance is a credit or a debit.

3. Calculate Westfields net income for August