Question

Prepare a Balance Sheet

On July, 31, 2022, the general ledger of Dewey, Cheatam and Howe, a law firm, showed the follwing balances: Cash $4,000, Accounts Receviable $1,500, Supplies, $500, Equipment, $5,000, Accounts Payable, $4,100, Common Stock $3,500, and Retained Earnings $3,400. During August, the following transactions occurred: Date Aug.3 Aug. 5 Aug. 6 Aug. 7 Aug. 12 Aug. 14 Aug. 18 Aug. 20 Transaction Description Collected $1,200 of accounts receivable due from customers. Received $1,300 cash for issuing common stock to new investors. Paid $2,700 cash on accounts payable. Performed legal services of $6,500, of which $3,000 was colelcted in cash and the remainder was due on account. Purchased additoinal equipment for $1,200, paying $400 in cash and the balance on account Paid salaries of $3,500, rent $900 and advertising expenses $275 for the month of August. Collected the balance for the services performedon August 7. Paid cash dividend of $500 ot stockholders. Billed a client $1,000 for legal services performed. Received $2,000 from Bank of Nowhere; the money was borrowed on a bank note payable that is due in six months. Agreed to perform legal services for a client in September for $4,500. The client will pay the amount they owe after the services have been performed. Aug. 26 Aug. 27 Aug. 28 Aug. 31 Received the utility bill for the month of August in the amount of $275; it is not due until September 15. Paid income tax for the month of $500.

Answer 1

Balance Sheet- Dewey, Chetam and Howe as on Aug 31, 2022
Assets	Amount ($)
Equipment	6,200
Supplies	500
Accounts Recievable	1,300
Cash	6,225
Total	14,225
Liabilities	Amount ($)
Common Stock	4,800
Retained earnings	4,950
Accounts Payable	4,475
Total	14,225