On july1, 2011, Lula Plume created a new self-storage business, Safe Storage Co.

The following transactions occurred during the company's first month.

july1 Plume invested $30,000 cash and buildings worth $150,000 in the business.

july 1Reggie Dunlop invested Cash $30,000 and Buildings worth $150,000 in the company and received Common Stock.

july2The company rented equipment by paying $2,000 cash for the first month's (july) rent.

july 5The company purchased $2,400 of office supplies for cash.

july 10The company paid $7,200 cash for the premium on a 12-month insurance policy. Coverage begins on March 11.

july 14The company paid an employee $1,000 cash for two weeks' salary earned.

july 24The company collected $9,800 cash for storage fees from customers.

july 28The company paid $1,000 cash for two weeks' salary earned by an employee.

july 29The company paid $950 cash for minor repairs to a leaking roof.

july 30The company paid $400 cash for this month's telephone bill.

july 31Shareholder was paid $2,000 cash in Dividends.

The Reggie Dunlop Company Chart of Accounts - 2011

Cash storage fees earned

Accounts receivable Depreciation Expense - Building

Office Supplies Salaries Expense

Prepaid Insurance Insurance Expense

Buildings Rent Expense

Accumulated Depreciation-BuildingsOffice Supplies Expense Salaries Payable Repairs Expense

Common Stock Telephone Expense

Dividends Income Summary

Retained Earnings

Required

1.

Prepare General Journal Entries for the following transactions.

2.

Then post the journal entries to the General Ledger and then make an Unadjusted Trial Balance. Your Trial Balance will be on the Worksheet.

3.

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

a.

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

b.

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

c.

This month's depreciation on the buildings is $1,500.

d.

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

e.

The company earned $1,150 of storage fees that are not yet billed at month-end.

And finish the worksheet

5.

Prepare the Income Statement, the Statement of Owner's Equity and the Balance Sheet for the period. Make sure you have the proper headings for each financial statement.

6.

Then prepare the closing journal entries of the temporary accounts , post to the Ledger , and make a Post-Closing Trial Balance