The general ledger of Zips Storage at January 1, 2018, includes the following account balances:

The following is a summary of the transactions for the year:
a. January 9 Provide storage services for cash, $134,100, and on account, $52,200.
b. February 12 Collect on accounts receivable, $51,500.
c. April 25 Receive cash in advance from customers, $12,900
d. May 6 Purchase supplies on account, $9,200.
e. July 15 Pay property taxes, $8,500.
f. September 10 Pay on accounts payable, $11,400.
g. October 31 Pay salaries, $123,600.
h. November 20 Issue shares of common stock in exchange for $27,000 cash
i. December 30 Pay $2,800 cash dividends to stockholders.
Required:
1. Set up the necessary T-accounts and enter the beginning balances from the trial balance. In addition to the accounts shown, the company has accounts for Supplies, Dividends, Service Revenue, Salaries Expense, Property Tax Expense, Supplies Expense, and Insurance Expense.
2. Record each of the summary transactions listed above.
3. Post the transactions to the accounts.
4. Prepare an unadjusted trial balance.
5. Record adjusting entries. Insurance expired during the year is $7,000. Supplies remaining on hand at the end of the year equal $2,900. Provide services of $11,800 related to cash paid in advance by customers.
6. Post adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare an income statement for 2018 and a classified balance sheet as of December 31, 2018.
9. Record closing entries.
10. Post closing entries
11. Prepare a post-closing trial balance.

Transcribed Image Text:

Accounts Cash Accounts Receivable Prepaid Insurance Land Accounts Payable Deferred Revenue Common Stock Retained Earnings DebitsCredits $24,600 15,400 12,000 148,000 $6,700 5,800 143,000 44,500 $200,000 $200,000 Totals