Question

Problem 1-2A (Part Level Submission) Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $5,900, Accounts Receivable $2,000, Supplies $500, Equipment $6,100, Accounts Payable $4,300, and Owner’s Capital $10,200. During August, the following transactions occurred. 1. Collected $1,700 of accounts receivable. 2. Paid $2,700 cash on accounts payable. 3. Recognized revenue of $7,600, of which $3,200 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $2,200, paying $400 in cash and the balance on account. 5. Paid salaries $2,500, rent for August $1,000, and advertising expenses $400. 6. Withdrew $700 in cash for personal use. 7. Received $1,200 from Standard Federal Bank—money borrowed on a note payable. 8. Incurred utility expenses for month on account $350. Collapse question part (a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. (If a transaction results in a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.) JUDI SALEM, ATTORNEY AT LAW Assets = Liabilities + Owner’s Equity Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner’s Capital – Owner’s Drawings + Revenues – Expenses Bal. $ $ $ $ $ $ $ $ $ $ 1. 2. 3. 4. 5. 6. 7. 8. $ $ $ $ = $ $ $ $ $ $ Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER Problem 1-2A (Part Level Submission) Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $5,900, Accounts Receivable $2,000, Supplies $500, Equipment $6,100, Accounts Payable $4,300, and Owner’s Capital $10,200. During August, the following transactions occurred. 1. Collected $1,700 of accounts receivable. 2. Paid $2,700 cash on accounts payable. 3. Recognized revenue of $7,600, of which $3,200 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $2,200, paying $400 in cash and the balance on account. 5. Paid salaries $2,500, rent for August $1,000, and advertising expenses $400. 6. Withdrew $700 in cash for personal use. 7. Received $1,200 from Standard Federal Bank—money borrowed on a note payable. 8. Incurred utility expenses for month on account $350. Collapse question part (a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. (If a transaction results in a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.) JUDI SALEM, ATTORNEY AT LAW Assets = Liabilities + Owner’s Equity Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner’s Capital – Owner’s Drawings + Revenues – Expenses Bal. $ $ $ $ $ $ $ $ $ $ 1. 2. 3. 4. 5. 6. 7. 8. $ $ $ $ = $ $ $ $ $ $ Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER Problem 1-2A (Part Level Submission) Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $5,900, Accounts Receivable $2,000, Supplies $500, Equipment $6,100, Accounts Payable $4,300, and Owner’s Capital $10,200. During August, the following transactions occurred. 1. Collected $1,700 of accounts receivable. 2. Paid $2,700 cash on accounts payable. 3. Recognized revenue of $7,600, of which $3,200 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $2,200, paying $400 in cash and the balance on account. 5. Paid salaries $2,500, rent for August $1,000, and advertising expenses $400. 6. Withdrew $700 in cash for personal use. 7. Received $1,200 from Standard Federal Bank—money borrowed on a note payable. 8. Incurred utility expenses for month on account $350. Collapse question part (a) Prepare a tabular analysis of the August transactions beginning with July 31 balances. (If a transaction results in a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)

Answer 1

a)		Assets								Liabilities				Owner's equity
	Transaction.	Cash	+	Accounts Receivable	+	Supplies	+	Equipment	=	Notes payable	+	Accounts Payable	+	Owner's Capital	-	Owner's Drawings	+	Revenues	-	Expenses
	Bal.	5900		2000		500		6100		0		4300		10200		0
	1	1700		-1700
	2	-2700										-2700
	3	3200		4400														7600
				(7600-3200)
	4	-400						2200				1800
	5	3900																		3900
		(2500+1000+400)
	6	-700														700
	7	1200								1200
	8											350								350