Joan Robinson opens her own law office on July 1, 2014. During the first month of operations, the following transactions occurred.
- Joan invested $11,000 in cash in the law practice.
- Paid $800 for July rent on office space.
- Purchased office equipment on account $3,000.
- Performed legal services to clients for cash $1,500.
- Borrowed $700 cash from a bank on a note payable.
- Performed legal services for client on account $2,000.
- Paid monthly expenses: salaries and wages $500, utilities $300, and advertising $100.
- Joan withdraws $1,000 cash for personal use.
Instructions
(a)Prepare a tabular summary of the transactions.
(b)Prepare the income statement, owner”s equity statement, and balance sheet at July 31 for Joan Robinson, Attorney.