record journal entries for each transaction shown and present financial statements for the two months of transactions. There should be an income statement and balance sheet for each month. Make sure your balance sheet balances.

Set up T-Accounts using the following accounts: 1001 Cash 1002 Petty Cash 1101 Inventory 1102 Prepaid Insurance 1103 Supplies 1201 Accounts Receivable 1301 Equipment 1302 Accumulated Depreciation Equipment 2001 Accounts Payable 3001 Owner's Capital 3002 Owner's Draw 4001 Fees Revenue 4002 Fees Revenue Refund 4101 Sales Revenue 5001 Cost of Goods Sold 6001 Wages Expense 7001 Rent Expense 7002 Utilities Expense 7101 Supplies Expense 7102 Telephone Expense 7103 Courier Expense 7201 Advertising Expense 7301 Insurance Expense 7501 Meals Expense 7502 Mileage Expense 7601 Training Expense 7602 Medical Library Expense 7701 Service Charge Expense 7901 Depreciation Expense 8101 Interest Expense 8102 Gain/Loss on Disposed Asset