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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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
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