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.

REQUIREMENT #$2$: Post the July journal entries to the following T$-$Accounts and compute ending balances.