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

July 2	Plume invested $30,000 cash and buildings worth $150,000 in the company.
3	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 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 revenue 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 buildings.
30	The company paid $400 cash for this months telephone bill.
31	Plume withdrew $2,000 cash from the company for personal use.

The companys chart of accounts follows:

101	Cash
106	Accounts Receivable
124	Office Supplies
128	Prepaid Insurance
173	Buildings
174	Accumulated DepreciationBuildings
209	Salaries Payable
301	L. Plume, Capital
302	L. Plume, Withdrawals
403	Storage Revenue
606	Depreciation ExpenseBuildings
622	Salaries Expense
637	Insurance Expense
640	Rent Expense
650	Office Supplies Expense
684	Repairs Expense
688	Telephone Expense
901	Income Summary

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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.

   Check (3) Unadj. trial balance totals, $189,800

4. Use the following information to journalize and post adjusting entries for the month.

   1. Prepaid insurance of $400 expired this month.

      (4a) Dr. Insurance Expense, $400

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

   3. This months depreciation on 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 revenue that is not yet recorded at month-end.

5. Prepare the adjusted trial balance as of July 31. Prepare the income statement and the statement of owners equity for the month of July and the balance sheet at July 31.

   (5) Net income, $2,725; Total assets, $180,825

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

7. Prepare a post-closing trial balance.

   (7) P-C trial balance totals, $182,325