Spot Out Cleaning Services Ltd. was incorporated July 1, 2018. At July 31, 2018, the trial balance shows the following balances for selected accounts: Prepaid insurance $ 4,500 Supplies 1,500 Equipment 36,000 Income tax payable -0- Bank loan payable 20,000 Unearned revenue 4,500 Service revenue 1,600 Additional information is as follows: 1. The company purchased a one-year insurance policy for $4,500, effective July 1. 2. The Supplies account shows a balance of $1,500 but a physical count shows only $300 of supplies remaining. 3. The equipment costing $36,000 is estimated to have a 10-year useful life [Do NOT consider residual value for this equipment]. 4. The bank loan payable was signed July 1. It is a six-month, 6% loan. Interest is payable on the first of each month. 5. Spot Out had performed services for a client totalling $500 but has not yet billed the client or recorded the transaction. 6. Nine customers paid for the company's six-month dry cleaning package of $500 each beginning in July. These customers received dry cleaning services in July. 7. Income tax expense for July is estimated to be $150.