D. Johnston, a physical therapist, opened Johnstons Clinic. His accountant provided the following chart of accounts: Assets Cash Accounts Receivable Office Equipment Office Furniture Liabilities Accounts Payable Owners Equity D. Johnston, Capital D. Johnston, Drawing Revenue Professional Fees Expenses Salary Expense Rent Expense Utilities Expense Miscellaneous Expense The following transactions occurred during July of this year: a. Johnston deposited $ 35,000 in a bank account in the name of the business. b. Bought filing cabinets (Office Equipment) on account from Muller Office Supply, $ 560. c. Paid cash for chairs and carpeting (Office Furniture) for the waiting room, $ 835, Ck. No. 1000. d. Bought a photocopier from Robs Office Equipment, $ 650, paying $ 250 in cash and placing the balance on account, Ck. No. 1001. e. Received and paid the telephone bill, which included installation charges, $ 185, Ck. No. 1002. f. Sold professional services on account, $ 2,255. g. Received and paid the bill for the state physical therapy convention, $ 445, Ck. No. 1003 ( Miscellaneous Expense). h. Received and paid the electric bill, $ 335, Ck. No. 1004. i. Received cash on account from credit customers, $ 1,940. j. Paid on account to Muller Office Supply, $ 250, Ck. No. 1005. k. Paid the office rent for the current month, $ 1,245, Ck. No. 1006. l. Sold professional services for cash, $ 1,950. m. Paid the salary of the receptionist, $ 960, Ck. No. 1007. n. Johnston withdrew cash for personal use, $ 1,200, Ck. No. 1008. Required 1. Record the owners name in the Capital and Drawing T accounts. 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts. 3. Record the transactions in the T accounts. Write the letter of each entry to identify the transaction. 4. Foot the T accounts and show the balances. 5. Prepare a trial balance as of July 31, 20. 6. Prepare an income statement for July 31, 20. 7. Prepare a statement of owners equity for July 31, 20. 8. Prepare a balance sheet as of July 31, 20.

Net Income:$1035