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Problem 4 - 1 B Applying the accounting cycle P 2 On July 1 , Lula Plume created a new self - storage business, Safe
Problem B
Applying the accounting cycle
P
On July Lula Plume created a new selfstorage business, Safe Storage Co The following transactions occurred during the company's first month.
July Plume invested $ cash and buildings worth $ in the company.
The company rented equipment by paying $ cash for the first month's July rent.
The company purchased $ of office supplies for cash.
The company paid $ cash for a month insurance policy. Coverage begins on July
The company paid an employee $ cash for two weeks' salary earned.
The company collected $ cash for storage revenue from customers.
The company paid $ cash for two weeks' salary earned by an employee.
The company paid $ cash for minor repairs to buildings.
The company paid $ cash for this month's telephone bill.
Plume withdrew $ cash from the company for personal use.
The company's chart of accounts follows:
Required
Use the balance column format to set up each ledger account listed in its chart of accounts.
Prepare journal entries to record the transactions for July and post them to ledger accounts.
Prepare an unadjusted trial balance as of July
Use the following information to journalize and post adjusting entries for the month.
Check Unadj. trial balance totals, $
a Prepaid insurance of $ expired this month.
b At the end of the month, $ of office supplies are still available.
a Dr Insurance Expense, $
Net income, $; Total assets, $
PC trial balance totals, $
c This month's depreciation on buildings is $
d An employee earned $ of unpaid and unrecorded salary as of monthend.
e The company earned $ of storage revenue that is not yet recorded at monthend.
Prepare the adjusted trial balance as of July Prepare the income statement and the statement of owner's equity for the month of July and the balance sheet at July
Prepare journal entries to close the temporary accounts and post these entries to the ledger.
Prepare a postclosing trial balance.
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