During its first month of operation, Peter's Auto Supply Corporation, which specializes in the sale of auto equipment and supplies, completed the following transactions. July Transactions Date Transaction Description July 1 Issued Common Stock in exchange for $100,000 cash.

July 1 Paid $4,000 in rent for July and August

July 2 Paid the insurance company $2,400 for a one-year insurance policy, beginning July 1.

July 5 Purchased inventory on account for $35,000 (Assume that the perpetual inventory system is used.)

July 6 Borrowed $36,500 from a local bank and signed a note. The interest rate is 10%, and principal and interest are due to be repaid in six months.

July 8 Sold inventory on account for $17,000.

The cost of the inventory is $7,000.

July 15 Paid employees $6,000 salaries for the first half of the month.

July 18 Sold inventory for $15,000 cash.

The cost of the inventory was $6,000.

July 20 Paid $15,000 to suppliers for the inventory purchased on January 5.

July 26 Collected $6,000 on account from customers.

July 30 Paid $1,000 to the local utility company for July gas and electricity.

REQUIREMENT #1: Prepare journal entries to record the July transactions in the General Journal below. Remember that Debits must equal CreditsAll of your Journal Entries should balance.

REQUIREMENT #2: Post the July journal entries to the following T-Accounts and compute ending balances. REQUIREMENT #3: Prepare a trial balance for July in the space below.

Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) One month's insurance has expired. b) One month's prepaid Rent has expired. c) The company accrued salaries of $6,000 that will be paid in August. d) Accrued interest on the note payable amounts to $250.

Requirement #5: Post the adjusting entries on July 31 below to the General Ledger T-accounts (Step 2) and compute adjusted balances. Just add to the balances that are already listed.

REQUIREMENT #6: Prepare an Adjusted Trial Balance in the space below.

Requirement #7: Prepare the financial statements for Peter's Auto Supply Corporation as of July 31 in the space below. You will only be preparing the Income Statement, Statement of Retained Earnings, and the Balance Sheet. The Statement of Cash Flows is a required Financial Statement, but is not required for this project.

Requirement #8: Prepare the closing entries at July 31 in the General Journal below. Hint:Use the balances for each account which appear on the Adjusted Trial Balance for your closing entries.

Requirement #9: Post the closing entries to the T-Accounts on the General Ledger ( Step 2) worksheet and compute ending balances. Just add to the adjusted balances already listed.

Requirement #10: Prepare a post-closing trial balance as of July 31 in the space below.