Blue, Attorney-at-Law, is a proprietorship owned and operated by Blue. On July 1, 2009, Blue, Attorney-at-Law, has the following assets and liabilities: cash, Birr 1,000; accounts receivable, Birr 3,200; supplies, Birr 850; land, Birr 10,000; accounts payable, Birr 1,530. Business transactions during July are as follows: A. Received cash from clients for services, Birr 3,928. B. Paid creditors on account, Birr 1,055. C. Received cash from Blue as an additional investment, Birr 3,700. D. Paid office rent for the month, Birr 1,200. E. Charged clients for legal services on account, Birr 2,025. F. Purchased supplies on account, Birr 245. G. Received cash from clients on account, Birr 3,000. H. Received invoice for services from Legal Aid Inc. for July (to be paid on August 10), Br 1,635 I. Paid the following: wages expense, Birr 850; answering service expense, Birr 250; utilities expense, Birr 325; and miscellaneous expense, Birr 75. J. Determined that the cost of supplies on hand was Birr 980 K. Mr Blue withdrew Birr 1,000 in cash from the business for personal use.
