Current Attempt in Progress 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. 1. 2. 3. 4. 5. 6. 7. 8. Collected $1,200 of accounts receivable. Paid $2,800 cash on accounts payable. Recognized revenue of $7,500 of which $4,000 is collected in cash and the balance is due in September. Purchased additional equipment for $2,000, paying $400 in cash and the balance on account. Paid salaries $2,800, rent for August $900, and advertising expenses $400. Withdrew $700 in cash for personal use. Received $2,000 from Standard Federal Bank-money borrowed on a note payable. Incurred utility expenses for month on account $270.