Gary Smith organized Safe Storage on January 1 for the purpose of leasing a large vacant building and renting space in this building to others for storage of industrial materials. The accounting policies of the company call for making adjusting entries and closing the accounts each month. Shown below is a trial balance and other information for use in preparing adjusting entries at January 31. LO8

Other data

(a) The monthly insurance expense amounted to $400.

(b) The amount of office supplies on hand, based on a physical count on January 31, was $195.

(c) A $3,000 one-year note payable was signed on January 1. Interest accrued at January 31 was $30.

(d) The useful life of office equipment was estimated at 8 years.

(e) Certain clients chose to pay several months’ storage fees in advance. It was determined that $480 of such fees was still unearned as of January 31.
(f ) Several clients neglected to send in storage fees amounting to $330 for the month of January. These amounts have not been recorded but are considered collecti¬ ble.
(g) Salaries earned by employees but not yet paid amounted to $240.
Instructions Based on the above trial balance and other information, prepare the adjusting entries (with explanations) needed at January 31.

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Cash Unexpired insurance Office supplies. Office equipment. Notes payable Unearned storage fees Gary Smith, capital Gary Smith, drawing. Storage fees earned. Rent expense Telephone expense Salaries expense. SAFE STORAGE Trial Balance January 31, 19. $ 8,105 4,080 405 7,200 $ 3,000 1,350 11,795 450 8,850 1,800 135 2,820 $24,995 $24,995