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During its first month of operation, Peter's Auto Supply Corporation, which specializes the sale of...

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Accounting

During its first month of operation, Peter's Auto Supply Corporation, which specializes the sale of auto equipment and supplies, completed the following transactions.
July Transactions
Date Transaction Description
July 1 Issued Common Stock in exchange for $100,000 cash.
July 1 Paid $4,000 rent for the months of July and August
July 2 Paid the insurance company $2,400 for a one year insurance policy, beginning July 1.
July 5 Purchased inventory on account for $35,000(Assume that the perpetual inventory system is used.)
July 6 Borrowed $36,500 from a local bank and signed a note. The interest rate is 10%, and principal and interest is due to be repaid in six months.
July 8 Sold inventory on account for $17,000. The cost of the inventory is $7,000.
July 15 Paid employees $6,000 salaries for the first half of the month.
July 18 Sold inventory for $15,000 cash. The cost of the inventory was $6,000.
July 20 Paid $15,000 to suppliers for the inventory purchased on January 5.
July 26 Collected $6,000 on account from customers.
July 30 Paid $1,000 to the local utility company for July gas and electricity.'
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