P12A Judi Salem opened a law office on July 1 2017 On July 3

P1-2A Judi Salem opened a law office on July 1, 2017, 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 trans- actions occurred 1. Collected $1,200 ofaccounts receivable 2. Paid $2,800 cash on accounts payable 3. Recognized revenue of $7,500 of which $3,000 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 5. Paid salaries $2,500, rent for August $900, and advertising expenses $400 account

Solution

a) Tabular analysis of the August transactions (Amount in $)

b) Income Statement for August 31 (Amount in $)

Owner\"s Equity for August (Amount in $)

Balance Sheet as on August 31, 2017 (Amount in $)

Particulars	Cash	+	Accounts Receivable	+	Supplies	+	Equipment	=	Notes Payable	+	Accounts Payable	+	Owner\'s Capital	-	Owner\'s Drawings	+	Revenues	-	Expenses
Balance as on July 31	5,000	+	1,500	+	500	+	6,000	=	0	+	4,200	+	8,800	-	0	+	0	-	0
Transaction 1	1,200		-1,200
Transaction 2	-2,800										-2,800
Transaction 3	3,000		4,500														7,500
Transaction 4	-400						2,000				1,600
Transaction 5 (Salaries)	-2,500																		2,500
Rent	-900																		900
Advertising expenses	-400																		400
Transaction 6	-700														700
Transaction 7	2,000								2,000
Transaction 8 (Utility expense)											270								270
Total balance as on August 31	3,500	+	4,800	+	500	+	8,000	=	2,000	+	3,270	+	8,800	-	700	+	7,500	-	4,070