Comprehensive Review Problem:

Part 1

The general ledger of Zips Storage at January 1, 2021, includes the following account balances:

Accounts

Debits

Credits

Cash

$

24,600

Accounts Receivable

15,400

Prepaid Insurance

12,000

Land

148,000

Accounts Payable

$

6,700

Deferred Revenue

5,800

Common Stock

143,000

Retained Earnings

44,500

Totals

$

200,000

$

200,000

The following is a summary of the transactions for the year:

1.

January

9

Provide storage services for cash, $134,100, and on account, $52,200.

2.

February

12

Collect on accounts receivable, $51,500.

3.

April

25

Receive cash in advance from customers, $12,900.

4.

May

6

Purchase supplies on account, $9,200.

5.

July

15

Pay property taxes, $8,500.

6.

September

10

Pay on accounts payable, $11,400.

7.

October

31

Pay salaries, $123,600.

8.

November

20

Issue shares of common stock in exchange for $27,000 cash.

9.

December

30

Pay $2,800 cash dividends to stockholders.

Required: Using that attached working papers,

A.Set up the T-accounts representing the company's ledger accounts

B.Prepare journal entries for the transactions above in the general journal

C.Post the entries to the T-accounts.

D.Prepare a trial balance.