Grindstone Paving provides residential and commercial paving services. Their balance sheet at the end of June 2020 is shown below, along with their chart of accounts. Grindstone Paving Balance Sheet As at June 30, 2020 Assets Liabilities Cash $7,600 Accounts Payable $14,300 Accounts Receivable $5,800 Unearned Revenue $7,400 Prepaid Insurance $996 Bank Loan $28,000 Equipment $57,600 Less: Accum. Depreciation 5,200 $52,400 Total Liabilities $49,700 Stone, Capital $17,096 Total Assets $66,796 Total Liabilities & Owners' Equity $66,796 NOTE: The bank loan has monthly payments of $1,000. Account Description Account # Account Description Account # ASSETS REVENUE Cast 101 Service Revenue 400 Accounts Receivable LOS EXPENSES Prepaid Insurance 110 Advertising Expense 500 Equipment 120 Depreciation Expense 510 Accumulated Depreciation 125 Insurance Expense 515 LIABILITIES Interest Expense 520 Accounts Payable 200 Salaries Expense 545 Interest Payable 205 Telephone Expense 550 Salary Payable 210 Unearned Revenue 215 Bank Loan 220 OWNER'S EQUITY Rocky Stone, Capital 300 Rocky Stone, Withdrawals 310 Income Summary 315 For the month of July 2020, Grindstone Paving had the following transactions: Jul 1 The owner invested $9,200 cash into the business. Jul 2 Received $2,200 cash for work that will be provided in August. lul 5 Received an advertising bill for $710 which will be paid next month lul 8 Paid the July telephone bill for $110 cash. Jul 10 Provided $8,800 worth of services to customers who will pay later. Jul 14 Purchased equipment with $7,600 cash. Jul 20 Received $2,290 in payment from customers paying their accounts. Jul 22 Paid $1,710 towards accounts payable Jul 24 Paid $1,000 toward principal of the bank loan. Jul 28 Paid $2,500 cash for an employee's salary (all of this salary was earned in July). Jul 30 The owner withdrew $2,100 cash for personal use. At the end of July, the following adjustment had to be journalized to properly report the balances of the company's accounts:Jul 31 One month of prepaid insurance worth $83 has been used. Jul 31 Monthly depreciation on the equipment was $800 Jul 31 Unearned revenue worth $480 has now been earned. Jul 31 Interest of $110 has accrued on the bank loan. Jul 31 Accrued salary expense of $440 for an employee