NO HANDWRITINGS NO HANDWRITINGS PLEASE!!!!!!!!!!!

5) Mackay Company's balance sheet showed the following liabilities at the beginning of July, 2006: Accounts Payable Short-term Notes Payable Interest Payable Unearned Revenue Other accrued Liabilities $ 6,250 12,000 125 2,100 750 The folowing transacioncurred daring the month of laly July 1 July 7 July 9 July 14 July 20 July 31 Took out a 3-month loan at 12% annual interest for $10,000 Paid $3,000 on accounts payable Paid the short-term note for $12,000 (disregard interest) Purchased $8,000 worth of merchandise on account Earned $1,100 of the unearned liability Recorded and paid the payroll liability for the month of July: Gross salary of $7,350, federal withholding of $1,470 Social Security withholding of $562, state income tax withholding of $367 and employee benefits of $350 (No employer match) (10 points) Required: 1. Prepare the accounting equation entries for the transactions above. 2. Prepare the current liability section of the balance sheet as of Jjuly 31, 2006. (Don't forget interest calculation)