The balance sheet of ABC at June 30, 2011 is provided below. A summary of the transactions during July 2011 follows.

Required: For each of the transactions below, record the required journal entries and any adjusting entries required at the end of July 2011.

(1) On July 1, ABC paid rent $2100 to cover 3 months.

(2) On July 3, 2011, ABC purchased additional inventory costing $2000 on account. On July 25, 2011, ABC sold some inventory to customers for $6000. Customers paid $5000 in cash and the rest was on account. On July 31, 2011, ABC has inventory balance $1000.

(3) ABC usually pays their employees on the 7th of each month for the service provided in the prior month. The monthly wage is $800.

(4) On July 7th, ABC paid the employees $800 for their services provided in June.

(5) On July 17, the company declared dividends of $300 (but not paid yet) to its shareholders.

(6) On July 31, 2011, ABC sold the equipment for $5500 cash. Some information about the equipment: The equipment was purchased on July 1, 2010 and was depreciated using straight line method with a residual value of zero. This was the only equipment ABC had.

Alkut 6. ZA?! A: >hofhtt! ABC Balance sheet As of June 30, 2011 800 Assets Cash Inventory 5,000 2,000 Liabilities Wage Payable Accounts payable Total Liabilities 600 $1.400 6,000 Equipment Less: Accumulated depreciation 600 5.400 Equipment, Net Shareholders' Equity Contributed Capital. 8,000 Retained Earnings 3,000 Total equity $11,000 $12,400 Total Assets $12.400 Total Liabilities and Equity