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During its first month of operation, Peter's Auto Supply Corporation, which specializes the sale of auto equipment and supplies, completed the following transactions. July Transactions
During its first month of operation, Peter's Auto Supply Corporation, which specializes 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 rent for the months of 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 is 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. |
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Peter's Auto Supply Corporation Adjusted Trial Balance July 31 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
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