1. Prepare a trial balance at July 31. Include Retained Earnings on the balance sheet even though the account has a zero balance.

CP2-2 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing a Trial Balance; Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Athletic Performance Company (APC) was incorporated as a private company. The company's accounts included the following at July 1 : During the month of July, the company had the following activities: a. Issued 4,500 shares of common stock for $450,000 cash. b. Borrowed $38,500 cash from a local bank, payable in two years. c. Bought a building for $201,500; paid $53,500 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $247,000. e. Purchased supplies for $10,600 on account