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Bindy Crawford created a corporation providing legal services, Bindy Crawford Inc., on July 1, 2022. On July 31 the balance sheet showed: Cash $4,000; Accounts Receivable $2,500; Supplies $500; Equipment $5,000; Accounts Payable $4,200; Common Stock $6,200; and Retained Earnings $1,600. During August the following transactions occurred.

Aug. 1Collected $1,100 of accounts receivable due from customers.4Paid $2,700 cash for accounts payable due.9Performed services worth $5,400, of which $3,600 is collected in cash and the balance is due in September.15Purchased additional office equipment for $4,000, paying $700 in cash and the balance on account.19Paid salaries $1,400, rent for August $700, and advertising expenses $350.23Paid a cash dividend of $700.26Borrowed $5,000 from American Federal Bank; the money was borrowed on a 4-month note payable.31Incurred utility expenses for the month on account $380.

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