Comprehensive Problem Set

On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the companies first month.

July 2	Plume invested $30,000 cash and buildings worth $80,000 in the company in exchange for its common stock.
July 3	The company rented equipment by paying $2,500 cash for the first months (July) rent.
July 5	The company purchased $2,300 of office supplies for cash.
July 10	The company paid $5,500 cash for a 12-month insurance policy. Coverage begins on July 11.
July 14	The company paid $1,700 cash for two weeks' salaries earned by employees.
July 24	The company collected $15,000 cash for storage revenue from customers.
July 28	The company paid $1,700 cash for two weeks' salaries earned by employees.
July 29	The company paid $800 cash for minor repairs to buildings.
July 30	The company paid $300 cash for this month's telephone bill.
July 30	The company paid $1,000 cash in dividends.

The company's chart of accounts follows:

101	Cash	403	Storage Revenue
106	Accounts Receivable	612	Depreciation ExpenseBuildings
124	Office Supplies	622	Salaries Expense
128	Prepaid Insurance	637	Insurance Expense
167	Buildings	640	Rent Expense
168	Accumulated DepreciationBuildings	650	Office Supplies Expense
209	Salaries Payable	684	Repairs Expense
307	Common Stock	688	Telephone Expense
318	Retained Earnings	901	Income Summary
319	Dividends

Required: 1. Use the balance column format to set up each ledger account listed in its chart of accounts

2. Prepare journal entries to record the transactions for July and post them to ledger accounts. 3. Prepare an unadjusted trial balance as of July 31. 4. Use the following information to prepare adjusting entries:

1. Prepaid insurance of $400 expired this month.
2. At the end of the month, $1,300 of office supplies are still available.
3. This months depreciation on buildings is $1,350.
4. Employees earned $400 of unpaid and unrecorded salaries as of month-end.
5. The company earned $2,750 of storage revenue that is not yet recorded at month-end.

5a. Using adjusted account balances, prepare an adjusted trial balance as of July 31. 5b. Prepare the income statement for the month of July 31. 5c. Prepare the statement of retained earnings for the month of July 31. 5d. Prepare the balance sheet at July 31. 6a. Prepare journal entries to close the temporary accounts.

6b. Post these entries to the ledger. 7. Prepare a post-closing trial balance.

1. Use the balance column format to set up each ledger account listed in its chart of accounts.

You may also use these to complete6b. Post these entries to the ledger.

General Ledger accounts
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance