On July 1, 2013, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the company's first month.;July 1 Plume invested $30,000 cash and buildings worth $150,000;in the company in exchange for common stock.;2 The company rented equipment by paying $2,000 cash for;the first month's (July) rent.;5 The company purchased $2,400 of office supplies for cash.;10 The company paid $7,200 cash for the premium on a;12-month insurance policy. Coverage begins on July 11.;14 The company paid an employee $1,000 cash for two weeks;salary earned.;24 the company collected $9800 cash for storage fees from;customers.;28 The company paid $1000 cash for two weeks salary earned;by an employee.;29 The company paid $950 cash for minor repairs to a leaking;roof.;30 the company paid $400 cash for this month's telephone bill.;31 The company paid $2000 cash for dividends.;The company's chart of accounts follows;101 Cash;106 Accounts Receivable;124 Office Supplies;128 Prepaid Insurance;173 Buildings;174 Accumulated Depreciation- Buildings;209 Salaries Payable;307 Common Stock;318 Retained Earnings;319 Dividends;401 Storage Fees Earned;606 Depreciation Expense- Buildings;622 Salaries Expense;637 Insurance Expense;640 Rent Expense;650 Office Supplies Expense;684 Repairs Expense;688 Telephone Expense;901 Income Summary;Required;1. Use the balance column format to set up each ledger account;listed in its chard of accounts.;2. Prepare journal entries to record the transactions for July and;post them to the ledger accounts. Record prepaid and unearned;items in balance sheet accounts.;3. Prepare an unadjusted trial balance as of July 31.;4. Use the following information to journalize and post adjusting;entries for the month;a. Two-thirds of one month's insurance coverage has expired.;b. At the end of the month, $1525 of office supplies are still;available.;c. This month's depreciation on the buildings is $1500.;d. An employee earned $100 of unpaid and unrecorded salary;as of month-end.;e. The company earned $1150 of storage fees that are not yet;billed at month-end.;5. Prepare the adjusted trial balance as of July 31. Prepare the;income statement and the statement of retained earnings for;the month of July and the balance sheet at July 31, 2013.;6. Prepare journal entries to close the temporary accounts and;post these entries to the ledger.;7. Prepare a post-closing trial balance.
Paper#24460 | Written in 18-Jul-2015Price : $27