Karl Ltd provides accounting training services. The chart of accounts for Karl Ltd is as follows:

Account name	Account number
Cash	1
Accounts receivable	2
Supplies	3
Prepaid rent	4
Equipment	5
Accumulated depreciation	6
Accounts payable	10
Unearned revenue	11
Rent payable	12
Wages payable	13
Dividend payable	14
Loan	15
Share capital	20
Retained profits	21
Service revenue	30
Interest revenue	31
Wages expense	40
Supply expense	41
Rent expense	42
Depreciation expense	43

The balance sheet of Karl Ltd at 31 June 2020 was as follows:

Karl Ltd Balance Sheet as at 31 June 2020
	$
Asset
Cash	55,000
Accounts receivable	20,000
Supplies	6,000
Total current asset	61,000
Equipment	8,000
Accumulated depreciation	(2,500)
Total Asset	86,500
Liabilities
Accounts payable	18,000
Wages payable	5,000
Total current liabilities	23,000
Loan	8,500
Total Liabilities	31,500
Shareholders Equity
Share capital	30,000
Retained profits	25,000
Total Shareholders Equity	55,000
Total liabilities and shareholders equity	86,500

The following events occurred for Karl Ltd during the month of July 2020:

a) On July 1st, paid $3,000 rent for the three-month period from 1 June 2020 to 31 August 2020.

b) Received $5,000 cash for the service to be delivered on 15 August 2020.

c) Received $6,000 cash for invoices previously raised on May 2019.

d) Purchased supplies costing $3,500 using cash.

e) Paid wages of $8,000 during the month, $3,000 of which was for last month (June) and the rest for this month (July).

f) Cash dividends of $5,000 declared and to be paid on August.

At the end of July 2020, the following internal transactions occurred and adjusting journal entries are needed:

g) Recognize the rent expense which has been prepaid for the month.

h) Bank statement shows the interest revenue for this month is $800.

i) Depreciation on equipment for the month is $1,000.

j) Physical count shows that the ending balance of supplies is $2,500.

Questions:

1. Prepare journal entries/adjusting journal entries for each of the above transactions.

2. What is the ending balance of Cash at the end of the month of July?

3. What is the total expense for the month of July?

4. What is the ending balance of Retained profit at the end of the month of July?