Taylor Smith is a singer who has experienced international success in her career. On May 1, 2020, Taylor started her business, Glitter and Gold Studio, where she teaches singing. The following activities occurred during July, the third month of operations:

Required

1. Prepare journal entries to record the July transactions.

2. Set up the following general ledger accounts using T-accounts, entering the balances brought forward from June 30, 2020: Cash (101) $6,000; Supplies (126) $950; Equipment (161) $8,000; Accounts Payable (201) $1,500; Unearned Teaching Revenue (233) $9,800; Taylor Smith, Capital (301) $3,000; Taylor Smith, Withdrawals (302) $13,000; Teaching Revenue (401) $46,000; Wages Expense (623) $26,350; and Rent Expense (640) $6,000.

3. Post the entries to the T-accounts; calculate the ending balance in each account.

4. Prepare a trial balance at July 31, 2020.

5. Use the trial balance to prepare an income statement and statement of changes in equity for the three months ended July 31, 2020, as well as a balance sheet at July 31, 2020.

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Purchased supplies including sheet music on credit for $100. Collected $4,000 in advance for singing lessons to be delivered in August. Collected $2,000 for teaching singing lessons in July. Paid $3,000 to rent her music studio for the month of July. Paid $500 for supplies purchased on account last month. July Taylor Smith withdrew cash of $500 to do some personal shopping on the weekend. 15 Paid her assistant wages of $1,300. 20 Purchased new microphone equipment on credit for $300. 31