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 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 #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.