Problem 1 2a Part Level Submission

Problem 1-2A (Part Level Submission)

Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $6,000, Accounts Receivable $1,600, Supplies $400, Equipment $6,000, Accounts Payable $4,000, and Owner’s Capital $10,000. During August, the following transactions occurred.

1. Collected $1,300 of accounts receivable.2. Paid $2,500 cash on accounts payable.3. Recognized revenue of $8,700, of which $2,100 is collected in cash and the balance is due in September.4. Purchased additional equipment for $2,500, paying $500 in cash and the balance on account.5. Paid salaries $2,200, rent for August $1,200, and advertising expenses $450.6. Withdrew $800 in cash for personal use.7. Received $1,700 from Standard Federal Bank—money borrowed on a note payable.8. 

Incurred utility expenses for month on account $370.


Posted in Uncategorized