Analyzing accrual transactions on a worksheet Sally Golfo, a registered nurse, opens a business called Sally's Elder Care. Golfo plans to care for the elderly herself in a facility that she will rent. The following transactions occurred during July 2019, her first month in business. July 1 Ms. Golfo invested $5,000 of her own money to start the business. 1 She borrowed $20,000 from the bank to provide her with additional cash. She agreed to repay the bank $1,000 on the last day of every month, starting July 31, with interest at the rate of 6 percent a year on the unpaid balance. 1 She rented the house next to hers for a 3-month period, paying a total of $6,000, to provide a facility to care for her patients. 1 She purchased furniture for the facility. She received an invoice for $4,800, payable in 10 days. 10 She paid the $4,800 invoice for the furniture. 18 She paid her assistant $800 for 2 weeks' work. 20 During the month, she billed her clients $12,000 for services rendered. 25 She received $9,000 in cash from the clients who were previously billed. 30 At month-end, she received a bill for electric service in the amount of $300. She will pay the bill in August. 30 During the month, she paid $500 for food to provide lunch to her clients. (Hint: For this problem, consider the food as an expense when it is purchased.) 31 She paid the bank $1,100 on the borrowing. Of that amount, $1,000 was for the principal payment on the loan, and $100 was for interest. Analyze the following accrual-type events, and add them to the worksheet template provided below. 1. Adjust for the expiration of one month's rent. 2. Adjust for the "using up" of the furniture during the month. (Assume the furniture will have a useful life of four years.) 3. Accrue for $800 of salary earned by the assistant during the last two weeks of the month but not yet paid to her. The balances that appear in the first row of the worksheet are a result of the transactions that occurred above for the month of July 2019. Use negative signs with your answers to indicate the transaction decreases an account balance. Accounts Prepaid Ref. Cash Balances $20,800 Receivable $3,000 Rent Furniture Notes Payable Accounts Payable Salaries Payable S.Golfo, Capital $6,000 $4,800 $19,000 $300 $0 $15,300 1 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 Totals $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0