Bindy Crawford created a corporation providing legal services, Larkspur Inc, on July 1, 2025. On July 31 the balance sheet showed Cash $5,200, Accounts Receivable $3,850, Supplies $840, Equipment $6,350, Accounts Payable $5,550, Common Stock $8,750, and Retained Earnings $1,940. During August, the following transactions occurred. Aug. 1 4 9 15 19 23 26 31 Collected $1,030 of accounts receivable due from customers. Paid $2,780 cash for accounts payable due. Performed services worth $5,610, of which $3,540 is collected in cash and the balance is due in September. Purchased additional office equipment for $4,350, paying $440 in cash and the balance on account. Paid salaries $1,350, rent for August $650, and advertising expenses $300. Paid a cash dividend of $700. Borrowed $5,200 from American Federal Bank; the money was borrowed on a 4-month note payable. Incurred utility expenses for the month on account $420.

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