1. Transactions and Financial Statements

   Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July:

   1. Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $52,000 in exchange for common stock.
   2. Borrowed $23,500 by issuing a note payable.
   3. Received cash from fees earned, $29,000.
   4. Paid rent on office and equipment for the month, $3,000.
   5. Paid automobile expense for the month, $1,900, and miscellaneous expense, $900.
   6. Paid office salaries, $4,500.
   7. Paid interest on the note payable, $100.
   8. Purchased land as a future building site, $58,000.
   9. Paid dividends, $3,800.