REQUIREMENT #1: Prepare journal entries to record the July transactions in the General Journal below. Remember that Debits must equal CreditsAll of your Journal Entries should balance. During its first month of operation, Peter's Auto Supply Corporation, which specializes the sale of auto equipment and supplies, completed the following transactions.

During its first month of operation, Peter's Auto Supply Corporation, which specializes the sale of auto equipment and supplies, completed the following transactions.
July Transactions
Date	Transaction Description
July 1	Issued Common Stock in exchange for $100,000 cash.
July 1	Paid $4,000 rent for the months of July and August
July 2	Paid the insurance company $2,400 for a one year insurance policy, beginning July 1.
July 5	Purchased inventory on account for $35,000 (Assume that the perpetual inventory system is used.)
July 6	Borrowed $36,500 from a local bank and signed a note. The interest rate is 10%, and principal and interest is due to be repaid in six months.
July 8	Sold inventory on account for $17,000. The cost of the inventory is $7,000.
July 15	Paid employees $6,000 salaries for the first half of the month.
July 18	Sold inventory for $15,000 cash. The cost of the inventory was $6,000.
July 20	Paid $15,000 to suppliers for the inventory purchased on January 5.
July 26	Collected $6,000 on account from customers.
July 30	Paid $1,000 to the local utility company for July gas and electricity.