For the following transactions shown below, you are required to 1) prepare the journal entries, 2) post the T-accounts, and 3) extract the trial balance.

Newbell Dry Cleaning Company opened its business bank account by depositing $60,000 on August 1.

Purchased supplies for $1,100 cash

Purchased dry cleaning equipment from Sears Corporation for $17,500, making a down payment of $7,500 cash. The remainder is placed on account.

Paid rent for the month in the amount of $4,12

Cash sales for the month were $9,250.

Paid salaries of $1,875 cash.

Paid Sears $2,500 cash on account.

The cost of supplies used for the month was $300.

On August 1, the company purchased insurance costing $12,000 (12 months).

Adjust the books to reflect insurance consumed for the month as $1,000.