Part XXX Accounting Cycle 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. Assets Cash Accounts Receivable Prepaid Insurance Equipment $57,600 Less: Accum. Depreciation 5,200 Grindstone Paving Balance Sheet As at June 30, 2020 Liabilities $7,600 Accounts Payable $5,800 Unearned Revenue $996 Bank Loan $14,300 $7,400 $28,000 $52,400 Total Liabilities Stone, Capital $66,796 Total Liabilities & Owners' Equity Total Assets $49,700 $17,096 $66,796 NOTE: The bank loan has monthly payments of $1,000. Account # Account # 400 101 105 110 120 125 Account Description ASSETS Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation LIABILITIES Accounts Payable Interest Payable Salary Payable Unearned Revenue Bank Loan OWNER'S EQUITY Rocky Stone, Capital Rocky Stone, Withdrawals Income Summary Account Description REVENUE Service Revenue EXPENSES Advertising Expense Depreciation Expense Insurance Expense Interest Expense Salaries Expense Telephone Expense 500 510 515 200 520 545 550 205 210 215 220 300 310 315 For the month of July 2020, Grindstone Paving had the following transactions: Jul 1 Jul 2 Jul 5 Jul 8 Jul 10 Jul 14 Jul 20 Jul 22 Jul 24 Jul 28 Jul 30 The owner invested $9,200 cash into the business. Received $2,200 cash for work that will be provided in August. Received an advertising bill for $710 which will be paid next month. Paid the July telephone bill for $110 cash. Provided $8,800 worth of services to customers who will pay later. Purchased equipment with $7,600 cash. Received $2,290 in payment from customers paying their accounts. Paid $1,710 towards accounts payable. Paid $1,000 toward principal of the bank loan. Paid $2,500 cash for an employee's salary (all of this salary was earned in July). 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: I gi W DLL