I'm needing help with problem 3-5b page 137 of Financial and Managerial Accounting, 8th Edition

Problem 3-5B Applying the accounting cycle P1 P2 P3 P4 P5 P6 P7 P8

On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the companys 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 months (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 $9,800 cash for storage fees from customers.
	28	The company paid $1,000 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 months telephone bill.
	31	The company paid $2,000 cash in dividends

The companys chart of accounts follows.

Page 137

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 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:

   1. Prepaid insurance of $400 has expired this month.

   2. At the end of the month, $1,525 of office supplies are still available.

   3. This months depreciation on the buildings is $1,500.

   4. An employee earned $100 of unpaid and unrecorded salary as of month-end.

   5. The company earned $1,150 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.

6. Prepare journal entries to close the temporary accounts and post these entries to the ledger.

7. Prepare a post-closing trial balance.