John Johnson owns a small shoe store in Searcy, Arkansas called Foot First Shoes and Apparel. He is

looking for a new accountant for his business and needs you to take care of all of his July financial

activities. John has provided the following information, and his balance sheet for June $30,2021.$

Be sure to list the journal entries in chronological order. You will want to review the entries for dates

before you start. Use proper accounting formats for all of your work.

The company also had the following transactions throughout the month:

$1.$ Record the following General Journal Entries

July $1$ Paid $$1,400$ for July rent

July $2$ Paid $$7,500$ on accounts payable due

July $6$ Received $$3,200$ from customers previously billed

July $10$ Received $$6,200$ worth of inventory on account

July $16$ Paid $$750$ for repairs and maintenance on equipment

July $19$ Paid $$5,000$ on accounts payable due

July $20$ Purchased new office equipment for $$1,500$ cash

July $24$ Received $$10,900$ from customers previously billed

John uses the specific identification method of inventory. All sales are billed and are recorded on the

$15$th and last day of each month. Sales for July were:

o $15$th $$ Sales $=12,325$ Cost of Goods Sold $=7,600$

o $31$st $$ Sales $=7,715$ Cost of Goods Sold $=4,250$

In July, John had one employee that worked every day Monday through Friday. He pays him $$500$ every

Friday. The month started on a Monday and ended on Wednesday $($hint $-$make a calendar$).$

$2.$ Record the following adjusting entries

Depreciation expense for the building is $$36,000$ per year

Depreciation expense for equipment is $$10,800$ per year

An end of month inventory revealed $$900$ of supplies remained on July $31$

$$1,900$ of the unearned revenue was earned during the month

$3.$ Post these entries into your Ledger $$ or T accounts.

$4.$ Create a trial balance.