P 4-2B Applying the accounting cycle On July 1, 2015, Lucinda Fogle created a new self-storage business, KeepSafe Co. The following transac- tions occurred during the company's first month. July 1 2 5 10 Fogle invested $20,000 cash and buildings worth $120,000 in the company. The company rented equipment by paying $1,800 cash for the first month's (July) rent. The company purchased $2,300 of office supplies for cash. The company paid $5,400 cash for the premium on a 12-month insurance policy. Coverage begins on July 11. The company paid an employee $900 cash for two weeks' salary earned. The company collected $8,800 cash for storage fees from customers. 14 24 28 The company paid $900 cash for two weeks' salary earned by an employee. 29 The company paid $850 cash for minor repairs to a leaking roof. 30 The company paid $300 cash for this month's telephone bill. 31 Fogle withdrew $1,600 cash from the company for personal use. The company's chart of accounts follows: 101 106 124 128 173 174 209 301 302 Cash Accounts Receivable Office Supplies Prepaid Insurance Buildings Accumulated Depreciation-Buildings Salaries Payable L. Fogle, Capital L. Fogle, Withdrawals 401 606 622 637 640 650 684 688 901 Storage Fees Earned Depreciation Expense-Buildings Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Income Summary 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 statement of financial position accounts. 3. Prepare an unadjusted trial balance as at 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, $1,550 of office supplies are still available. c. This month's depreciation on the buildings is $1,200. d. An employee earned $180 of unpaid and unrecorded salary as at month-end. e. The company earned $950 of storage fees that are not yet billed at month-end. 5. Prepare the income statement and the statement of changes in equity for the month of July and the statement of financial position at July 31, 2015. 6. Prepare journal entries to close the temporary accounts and post these entries to the ledger. 7. Prepare a post-closing trial balance.

P 4-2B Applying the accounting cycle On Jaly 1, 2015, Lucinda Fogle created a sew self-storage besiness, KeepSafe Ca. The following transactions occurrod during the company's fint month. July 1 Fogle invested $20,000csch and boildings worth $120,000 in the compuny. 2 The company rented equiprenent by paying $1,800 cash for the first month's (July) rent. 5 The company purchased $2,300 of office sappliea for eash. 10 The company paid $5,400 cash for the permiam on a 12 -mosth insurance policy. Coverage begins on Jaly 11. 14 The company paid an employee $900 cash for two wecks" sakary earned. 24 The company collected $8,800 cash for storage fees from customers. 28 The coenpany paid $900 canh for two weeks' salary earned by an employec. 29 The company paid $850 cash for minor repairs to a leaking roof. 30 The company paid $300 cash for this monkh's teleptone bill. 31 Fogle withdrew $1,600 cash from the company for personal use. The company's chart of accounts follows: Reguired 1. Use the balance column format to set up each ledger account listed it its chart of accoents. 2. Prepure joumal entries to rocotd the trantactions for Jely aed post them to the ledger accousta. Record prepaid and uscarned hems in statement of financial position aceounts. 3. Prepare an unadjusted trial balance as at Jaly 31. 4. Use the following information to journalize and post adjusting entries for the month: a. Two-thirds of ooe nonth's insurance coverage has expired. b. At the end of the month, $1,550 of office supplies are still available. c. This mooth's depecciation on the buildings is $1,200, d. An employee camed $180 of unpaid and unreconded salary as at month-end. e. The company earied 5950 of storage fees that are not yet bilhd at meetb-end. 5. Prepare the iacoene statement and the statement of changes in oquity for the month of Jaly and the statement of fiancial potition at July 31,2015. 6. Proparo journal entries to close the temporary accounts and post these entries to the ledger. 7. Preparo a post-closing trial balince