Preparation of T-account entries, adjusted trial balance, income statement, and balance sheet. The adjusted, post-closing trial balance of Bosworth Computer Repair Services at June 30, Year 8, appears in Exhibit 3.15. A summary of the transactions during July follows.

(1) Performed repair services, for which it received \(\$ 2,250\) cash immediately.

(2) Performed additional repair work, \(\$ 500\), and sent bills to customers for this amount.

(3) Paid creditors \(\$ 1,000\).

(4) Took out insurance on equipment on July 1 and issued a check to cover one year's premium of \(\$ 240\).

(5) Paid \(\$ 150\) for a series of advertisements that appeared in the local newspaper during July.

(6) Issued a check for \(\$ 325\) for rent of shop space for July.

(7) Paid telephone bill of \(\$ 90\) for the month.

(8) Collected \(\$ 250\) of the amount charged to customers in item (2).

(9) Paid salaries to employees of \(\$ 1,100\) for the month.

Adjusting entries required at the end of July relate to the following:

(10) The cost of insurance expired during July is \(\$ 20\).

(11) The cost of repair parts used during the month is \(\$ 450\).

(12) The cost of office supplies used during July is \(\$ 100\).

(13) Depreciation of equipment for the month is \(\$ 75\).

a. Open T-accounts and insert the July 1 balances.

b. Record the transactions for the month of July and adjusting entries at the end of July in the \(\mathrm{T}\)-accounts, opening additional \(\mathrm{T}\)-accounts for individual revenue and expense accounts as needed. Cross-reference the entries using the numbers of the transactions above.

c. Prepare an adjusted, preclosing trial balance at July 31, Year 8, and an income statement for the month of July.

d. Enter closing entries in the T-accounts using an Income Summary account.

e. Prepare a balance sheet as of July 31 , Year 8 .