ASSETS Current Assets Cash Accounts Receivable - net Inventory Supplies Prepaid insurance Total Current Assets Property. Plant & Equipment Land Buildings Equipment Less: Accumulated Depreciation Property, Plant & Equipment - net Total Assets Mundy Corporation Balance Sheet June 30, 2019 UABILTIES Current Uabilities 20,300 Accounts Payable 8,160 Wages Payable 16,450 Interest Payable 6,650 Unearned Revenue 10.000 Total Current Liabilities 61.560 Long-Term Liabilities Notes Payable 5,590 Total Liabilities 21,000 STOCKHOLDERS' EQUITY 44,500 Common Stock (no par) (17.650) Retained Earnings 53,440 Total Stockholders' Equity 115.000 Total Liabilities & Stockholders' Equity 25,600 34,300 1,350 5.200 66,950 24,700 91.650 1,350 22.000 22.250 115.000 Below is a list of all July transaction: a. Purchased inventory costing $500, paying $250 in cash and owing the rest on account b. Employees earned wages of $1,000. Paid employees $5,000, c. Received $1,160 on account for a June purchase. d. Paid $2,000 for advertising in July and August. e. Received $200 in advance from a customer for an August sale. f Insurance is paid through December 1, 2019. Repaid a $5,000 note to Liberty, Inc. plus $ 700 of interest for June and July h. Paid $6,000 for July rent. 1. Used $3,000 of supplies. j. Issued common stock for $2,000. k. Sold land, which cost $5,590, for $5,000. 1. Provided $5,000 of services to Volo, Inc. which were paid for in June. m. Paid S750 income tax expense. n. Purchased and paid $100 for supplies. 0. Purchased equipment on July 31 for $460, paying $200 in cash and owing the rest on account Required: 1. Prepare T-accounts for each of the balance sheet accounts and enter the July 2019 activity. Create new accounts as necessary. 2. Complete the July 31, 2019 balance sheet below for Mundy Corporation. 3. Prepare a classified income statement for the month of July. In parallel columns, show what would have been reported on an accrual basis and a cash basis. ASSETS Current Assets Cash Accounts Receivable - net Inventory Supplies Prepaid insurance Total Current Assets Property. Plant & Equipment Land Buildings Equipment Less: Accumulated Depreciation Property, Plant & Equipment - net Total Assets Mundy Corporation Balance Sheet June 30, 2019 UABILTIES Current Uabilities 20,300 Accounts Payable 8,160 Wages Payable 16,450 Interest Payable 6,650 Unearned Revenue 10.000 Total Current Liabilities 61.560 Long-Term Liabilities Notes Payable 5,590 Total Liabilities 21,000 STOCKHOLDERS' EQUITY 44,500 Common Stock (no par) (17.650) Retained Earnings 53,440 Total Stockholders' Equity 115.000 Total Liabilities & Stockholders' Equity 25,600 34,300 1,350 5.200 66,950 24,700 91.650 1,350 22.000 22.250 115.000 Below is a list of all July transaction: a. Purchased inventory costing $500, paying $250 in cash and owing the rest on account b. Employees earned wages of $1,000. Paid employees $5,000, c. Received $1,160 on account for a June purchase. d. Paid $2,000 for advertising in July and August. e. Received $200 in advance from a customer for an August sale. f Insurance is paid through December 1, 2019. Repaid a $5,000 note to Liberty, Inc. plus $ 700 of interest for June and July h. Paid $6,000 for July rent. 1. Used $3,000 of supplies. j. Issued common stock for $2,000. k. Sold land, which cost $5,590, for $5,000. 1. Provided $5,000 of services to Volo, Inc. which were paid for in June. m. Paid S750 income tax expense. n. Purchased and paid $100 for supplies. 0. Purchased equipment on July 31 for $460, paying $200 in cash and owing the rest on account Required: 1. Prepare T-accounts for each of the balance sheet accounts and enter the July 2019 activity. Create new accounts as necessary. 2. Complete the July 31, 2019 balance sheet below for Mundy Corporation. 3. Prepare a classified income statement for the month of July. In parallel columns, show what would have been reported on an accrual basis and a cash basis