On July 1, 2013, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the company's 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 month's (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 $9800 cash for storage fees from

customers.

28 The company paid $1000 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 month's telephone bill.

31 The company paid $2000 cash for dividends.

The company's chart of accounts follows:

101 Cash

106 Accounts Receivable

124 Office Supplies

128 Prepaid Insurance

173 Buildings

174 Accumulated Depreciation- Buildings

209 Salaries Payable

307 Common Stock

318 Retained Earnings

319 Dividends

401 Storage Fees Earned

606 Depreciation Expense- Buildings

622 Salaries Expense

637 Insurance Expense

640 Rent Expense

650 Office Supplies Expense

684 Repairs Expense

688 Telephone Expense

901 Income Summary

Required:

1. Use the balance column format to set up each ledger account

listed in its chard 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:

a. Two-thirds of one month's insurance coverage has expired.

b. At the end of the month, $1525 of office supplies are still

available.

c. This month's depreciation on the buildings is $1500.

d. An employee earned $100 of unpaid and unrecorded salary

as of month-end.

e. The company earned $1150 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, 2013.

6. Prepare journal entries to close the temporary accounts and

post these entries to the ledger.

7. Prepare a post-closing trial balance.