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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. 2. 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. 4. 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. 8. Curred utility expenses for month on account $270.

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. 2. 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. 4. 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. 8. Curred utility expenses for month on account $270.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sonva lared 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. 2. 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. 4. 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 $40. 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.
Transcribed Image Text:Sonva lared 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. 2. 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. 4. 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 $40. 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.
Prepare an income statement for Augtist. SONYA JARED, ATTORNEY AT LAW Income Statement Revenues Service Revenue 6.500 Expenses Advertising Expense 500 Rent Expense 1600 Gasoline Expense 200 Utilities Expense 150 Total Expenses 2,450 Net Income / (Loss) 4.050 eTextbook and Media
Transcribed Image Text:Prepare an income statement for Augtist. SONYA JARED, ATTORNEY AT LAW Income Statement Revenues Service Revenue 6.500 Expenses Advertising Expense 500 Rent Expense 1600 Gasoline Expense 200 Utilities Expense 150 Total Expenses 2,450 Net Income / (Loss) 4.050 eTextbook and Media
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