You started your company with $$80,000$ that you raised by selling stock in Practice

Makes Perfect Inc. to your family and friends.

You purchased $3$ pianos for $$30,000$ each, paying cash. You believe these pianos will

last three years before you replace them. You expect the salvage value to be zero.

Knowing that you would need additional funds, you presented your business plan to

the bank and were able to get a $$200,000$ loan at $12\%.$

You spent $$2,000$ on supplies $($inventory$),$ which you charged on account.

The newspaper bills you $$800$ for the advertisement you ran. You plan on paying the

bill next month.

The first month you bill students $$6,000$ for lessons.

Rent for the space you have leased is $$4,000$ a month, which you paid.

You pay your two part$-$time piano teachers $$500$ each at the end of the month.

One of your students paid the $$$200$ invoice you sent earlier in the month.

You adjust the supplies $($inventory$)$ account for $$300$ of sheet music that you gave to

students. $($Hint: how do you show that you have "used" or sold inventory?$)$

You record one month of depreciation on the pianos.

You write the check for the interest owed for the month.