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and cash collections described in part 1 for January. On July 1 , Lula Plume created a new self - storage business, Safe Storage Co
and cash collections described in part for January.
On July Lula Plume created a new selfstorage business, Safe Storage Co The following transactions
occurred during the company's first month.
July Plume invested $ cash and buildings worth $ in the company.
The company rented equipment by paying $ cash for the first month's July rent.
The company paid $ cash for a month insurance policy. Coverage begins on July
PROBLEM SET B
The company paid an employee $ cash for two weeks' salary earned.
Problem B
Applying the accounting
cycle
The company collected $ cash for storage revenue from customers.
The company paid $ cash for two weeks' salary earned by an employee.
The company paid $ cash for minor repairs to buildings.
The company paid $ cash for this month's telephone bill.
Plume withdrew $ cash from the company for personal use.
The company's chart of accounts follows:
continued on next pagecontinued from preceding page
Required
Check UnadJ, trial
balance totals, $
a Dr Insurance Expense,
$
Net income, $; Total
assets, $
PC trial balance totals,
$
Use the balance column format to set up each ledger account listed in its chart of accounts.
Prepare journal entries to record the transactions for July and post them to ledger accounts.
Prepare an unadjusted trial balance as of July
Use the following information to journalize and post adjusting entries for the month.
a Prepaid insurance of $ expired this month.
b At the end of the month, $ of office supplies are still available.
c This month's depreciation on buildings is $
d An employee earned $ of unpaid and unrecorded salary as of monthend.
e The company earned $ of storage revenue that is not yet recorded at monthend.
Prepare the adjusted trial balance as of July Prepare the income statement and the statement of
owner's equity for the month of July and the balance sheet at July
Prepare journal entries to close the temporary accounts and post these entries to the ledger.
Prepare a postclosing trial balance.
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