Homework Help is Here – Start Your Trial Now!
Business
Accounting
Sonya Jared opened a law offi ce on July 1, 2020, On July 31, the Balance Sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment S6,000, Accounis Payable $4,200, and Owner's Capital $8,800. During August, the following transactions occurred. 1. Collected $1,200 of accounts receivable. 2. 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. 7. Received $2,000 from Standard Federal Bank money borrowed on a note payable. 8. Incurred utility expenses for month on accunt $270. Instructions a. Prepare a tabular analysis of the August transactions beginning with July 31 balances, The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner's Capital - Owner's Drawings + Revenues – Expenses, b. Prepare an Income Statement for August, an owner's Equity statement for August, and a balance sheet at August 31.

Sonya Jared opened a law offi ce on July 1, 2020, On July 31, the Balance Sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment S6,000, Accounis Payable $4,200, and Owner's Capital $8,800. During August, the following transactions occurred. 1. Collected $1,200 of accounts receivable. 2. 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. 7. Received $2,000 from Standard Federal Bank money borrowed on a note payable. 8. Incurred utility expenses for month on accunt $270. Instructions a. Prepare a tabular analysis of the August transactions beginning with July 31 balances, The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner's Capital - Owner's Drawings + Revenues – Expenses, b. Prepare an Income Statement for August, an owner's Equity statement for August, and a balance sheet at August 31.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Help
Sonya Jared opened a law offi ce on July 1, 2020. On July 31, the Balance Sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment S6,000, Accounts Payable $4,200, and Owner's Capital $8,800. During August, the föllowing transactions occurred. 1. Collected $1,200 of accounts receivable. 2. 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 çash 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. 7. Received $2,000 from Standard Federal Bank money borrowed on a note payable. 8. Incurred utility expenses for month on account $270. Instructions a. Prepare a tabular analysis of the August transactions beginning with July 31 balances, The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner's Capital – Owner's Drawings + Revenues – Expenses, b. Prepare an Income Statement for August, an owner's Equity statement for August, and a balance sheet at August 31.
Transcribed Image Text:Sonya Jared opened a law offi ce on July 1, 2020. On July 31, the Balance Sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $500, Equipment S6,000, Accounts Payable $4,200, and Owner's Capital $8,800. During August, the föllowing transactions occurred. 1. Collected $1,200 of accounts receivable. 2. 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 çash 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. 7. Received $2,000 from Standard Federal Bank money borrowed on a note payable. 8. Incurred utility expenses for month on account $270. Instructions a. Prepare a tabular analysis of the August transactions beginning with July 31 balances, The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner's Capital – Owner's Drawings + Revenues – Expenses, b. Prepare an Income Statement for August, an owner's Equity statement for August, and a balance sheet at August 31.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS