The chart of accounts of Mels Delivery Service includes the following: Cash, 111; Accounts Receivable, 112; Office Equipment, 121; Delivery Trucks, 122; Accounts Payable, 211; Mel Free, Capital, 311; Mel Free, Withdrawals, 312; Delivery Fees Earned, 411; Advertising Expense, 511; Gas Expense, 512; Salaries Expense, 513; and Telephone Expense, 514. The following transactions resulted for Mels Delivery Service during the month of July 2023:

1. Mel invested $10,000 in the business from his personal savings account.

2. Bought delivery truck on account, $17,000.

3. Advertising bill received but unpaid, $700.

4. Bought office equipment for cash, $1,200.

5. Received cash for delivery services rendered, $15,000.

6. Paid salaries expense, $3,000.

7. Paid gas expense for company trucks, $1,250.

8. Billed customers for delivery services rendered, $4,000.

9. Paid telephone bill, $300.

10. Received $3,000 as partial payment of Transaction H.

11. Mel paid home telephone bill from company chequebook, $150.

Assignment:

As Mels newly employed accountant, you must do the following:

1. Record transactions in the T accounts. (Place the letter of the transaction next to the entry.)

2. Prepare from the trial balance, in proper form, (a) an income statement for the month of July, (b) a statement of owners equity, and (c) a balance sheet as of July 31, 2023.