REQUIREMENT #2: Post the July journal entries to the following T-Accounts and compute ending balances.

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.

Account Number	Account Title
111	Cash
112	Accounts Receivable
115	Inventory
117	Prepaid Rent
119	Prepaid Insurance
212	Accounts Payable
213	Notes Payable
214	Salaries Payable
215	Interest Payable
311	Common Stock
312	Retained Earnings
411	Sales Revenue
500	Cost of Goods Sold
511	Rent Expense
512	Insurance Expense
513	Salaries Expense
514	Interest Expense
515	Utilities Expense