Reference no: EM132419830

July 2 Paid $1,800 for two months' rent in advance for July and August.

7 Purchased $220 of supplies on account.

14 Collected half of outstanding accounts receivable.

15 Borrowed $2,000 from the bank for one year at an interest rate of 5%.

21 Received $2,000 cash from a customer for services to be performed in August.

28 Performed $1,500 of services to a customer on account.

Additional information:

At July 31, the company had performed $800 of services for a client that it had not billed or recorded.

Refer to the July 2 transaction where rent was paid in advance and adjust, if required

Supplies on hand at July 31 were $600.

The equipment has a five-year useful life and uses straight-line depreciation.

Interest is due on the bank loan on the first day of each following month, beginning August 1.

As at July 31, the company owed $3,500 of salaries to its employees for the month just ended.7.As at July 31, the company had earned $2,000 of revenue that had been paid in advance.

Record the July transactions.

Make adjusting entries at July 31, assuming the company prepares adjusting entries monthly.