Required:

Prepare journal entries to record the July transactions.

Set up the following general ledger accounts using $T-$accounts, entering the balances brought forward from June $30,2017$: Cash $(101)$ $$6,000$; Supplies $(126)$ $$950$; Equipment $(161)$ $$8,000$; Accounts Payable $(201)$ $$1,500$; Unearned Teaching Revenue $(233)$ $$9,800$; Tayler Smith, Capital $(301)$ $$3,000$; Tayler Smith, Withdrawals $(302)$ $$13,000$; Teaching Revenue $(401)$ $$46,000$; Wages Expense $(623)$ $$26,350$; and Rent Expense $(640)$ $$6,000.$

Post the entries to the T$-$accounts; calculate the ending balance in each account.

Prepare a trial balance at July $31,2017.$

Use the trial balance to prepare an income statement and statement of changes in equity for the three months ended July $31,2017,$ as well as a balance sheet at July $31,2017.$