On July $31,20$X$1,$ after one month of operation, the general ledger of Michael Lee, CPA, contained the accounts and balances given below.

$\backslash$table$[[$ACCOUNTS AND BALANCES,$],[$Cash$,$$$27,710$ Debit$],[$Accounts Receivable,$2,940$ Debit$],[$Supplies$,960$ Debit$],[$Prepaid Rent,$10,500$ Debit$],[$Prepaid Insurance,$2,820$ Debit$],[$Prepaid Advertising,$500$ Debit$],[$Furniture$,14,760$ Debit$],[$Accumulated Depreciation$-$Furniture,$],[$Equipment$,7,250$ Debit$],[$Accumulated Depreciation$-$Equipment,$],[$Notes Payable,$18,000$ Credit$],[$Accounts Payable,$4,200$ Credit$],[$Interest Payable,$],[$Unearned Accounting Fees,$7,200$ Credit$],[$Michael Lee, Capital,$35,720$ Credit$],[$Michael Lee, Drawing,$3,600$ Debit$],[$Accounting Fees,$10,600$ Credit$],[$Salaries Expense,$4,200$ Debit$],[$Utilities Expense,$270$ Debit$],[$Telephone Expense,$210$ Debit$],[$Supplies Expense,$],[$Rent Expense,$]]$

ADJUSTMENTS