Taylor Smith is a singer who has experienced international success in her career. On May 1, 2023, Taylor started her business, Glitter and Gold Studio, where she teaches singing. The following activities occurred during July, the third month of operations: July 1 Purchased supplies including sheet music on credit for $150. 2 Collected $7,800 in advance for singing lessons to be delivered in August. 3 Collected $3,900 for teaching singing lessons in July. 4 Paid $4,900 to rent her music studio for the month of July.. 5 Paid $900 for supplies purchased on account last month. 15 Taylor Smith withdrew cash of $850 to do some personal shopping on the weekend. 20 Paid her assistant wages of $1,800. 31 Purchased new microphone equipment on credit for $1,250. Required: 1. Prepare journal entries to record the July transactions.

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…