Comprehensive Problem Set On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the companies first month. July 2 Plume invested $30,000 cash and buildings worth $150,000 in the company in exchange for its common stock. July 3 The company rented equipment by paying $2,000 cash for the first month’s (July) rent. July 5 The company purchased $2,400 of office supplies for cash. July 10 The company paid $7,200 cash for a 12-month insurance policy. Coverage begins on July 11. July 14 The company paid $1,000 cash for two weeks' salaries earned by employees. July 24 The company collected $9,800 cash for storage revenue from customers. July 28 The company paid $1,000 cash for two weeks' salaries earned by employees. July 29 The company paid $950 cash for minor repairs to buildings. July 30 The company paid $400 cash for this month's telephone bill. July 30 The company paid $2,000 cash in dividends. The company's chart of accounts follows: 101 Cash 403 Commissions Revenue 106 Accounts Receivable 612 Depreciation Expense—Buildings 124 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Buildings 640 Rent Expense 168 Accumulated Depreciation—Buildings 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 307 Common Stock 688 Telephone Expense 318 Retained Earnings 901 Income Summary 319 Dividends adjusting entries as of July 31: Prepaid insurance of $400 expired this month. At the end of the month, $1,525 of office supplies are still available. This month’s depreciation on buildings is $1,500. Employees earned $100 of unpaid and unrecorded salaries as of month-end. The company earned $1,150 of storage revenue that is not yet recorded at month-end. Required: Prepare the balance sheet at July 31. Assets Total Assets Liabilities Equity Total Liabilities and Equity

Comprehensive Problem Set On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the companies first month. July 2 Plume invested $30,000 cash and buildings worth $150,000 in the company in exchange for its common stock. July 3 The company rented equipment by paying $2,000 cash for the first month’s (July) rent. July 5 The company purchased $2,400 of office supplies for cash. July 10 The company paid $7,200 cash for a 12-month insurance policy. Coverage begins on July 11. July 14 The company paid $1,000 cash for two weeks' salaries earned by employees. July 24 The company collected $9,800 cash for storage revenue from customers. July 28 The company paid $1,000 cash for two weeks' salaries earned by employees. July 29 The company paid $950 cash for minor repairs to buildings. July 30 The company paid $400 cash for this month's telephone bill. July 30 The company paid $2,000 cash in dividends. The company's chart of accounts follows: 101 Cash 403 Commissions Revenue 106 Accounts Receivable 612 Depreciation Expense—Buildings 124 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Buildings 640 Rent Expense 168 Accumulated Depreciation—Buildings 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 307 Common Stock 688 Telephone Expense 318 Retained Earnings 901 Income Summary 319 Dividends adjusting entries as of July 31: Prepaid insurance of $400 expired this month. At the end of the month, $1,525 of office supplies are still available. This month’s depreciation on buildings is $1,500. Employees earned $100 of unpaid and unrecorded salaries as of month-end. The company earned $1,150 of storage revenue that is not yet recorded at month-end. Required: Prepare the balance sheet at July 31. Assets Total Assets Liabilities Equity Total Liabilities and Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Comprehensive Problem Set

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

July 2	Plume invested $30,000 cash and buildings worth $150,000 in the company in exchange for its common stock.
July 3	The company rented equipment by paying $2,000 cash for the first month’s (July) rent.
July 5	The company purchased $2,400 of office supplies for cash.
July 10	The company paid $7,200 cash for a 12-month insurance policy. Coverage begins on July 11.
July 14	The company paid $1,000 cash for two weeks' salaries earned by employees.
July 24	The company collected $9,800 cash for storage revenue from customers.
July 28	The company paid $1,000 cash for two weeks' salaries earned by employees.
July 29	The company paid $950 cash for minor repairs to buildings.
July 30	The company paid $400 cash for this month's telephone bill.
July 30	The company paid $2,000 cash in dividends.

The company's chart of accounts follows:

101	Cash	403	Commissions Revenue
106	Accounts Receivable	612	Depreciation Expense—Buildings
124	Office Supplies	622	Salaries Expense
128	Prepaid Insurance	637	Insurance Expense
167	Buildings	640	Rent Expense
168	Accumulated Depreciation—Buildings	650	Office Supplies Expense
209	Salaries Payable	684	Repairs Expense
307	Common Stock	688	Telephone Expense
318	Retained Earnings	901	Income Summary
319	Dividends

adjusting entries as of July 31:

Prepaid insurance of $400 expired this month.
At the end of the month, $1,525 of office supplies are still available.
This month’s depreciation on buildings is $1,500.
Employees earned $100 of unpaid and unrecorded salaries as of month-end.
The company earned $1,150 of storage revenue that is not yet recorded at month-end.

Required:

Prepare the balance sheet at July 31.




Assets






Total Assets
Liabilities

Equity




Total Liabilities and Equity

Comprehensive Problem Set
On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following
transactions occurred during the companies first month.
July 2 Plume invested $30,000 cash and buildings worth $150,000 in the company in exchange for its
common stock.
July 3
The company rented equipment by paying $2,000 cash for the first month's (July) rent.
July 5
The company purchased $2,400 of office supplies for cash.
July 10
The company paid $7,200 cash for a 12-month insurance policy. Coverage begins on July 11.
July 14
The company paid $1,000 cash for two weeks' salaries earned by employees.
July 24
The company collected $9,800 cash for storage revenue from customers.
July 28
The company paid $1,000 cash for two weeks' salaries earned by employees.
The company paid $950 cash for minor repairs to buildings.
July 29
July 30
The company paid $400 cash for this month's telephone bill.
July 30 The company paid $2,000 cash in dividends.
The company's chart of accounts follows:
101 Cash
403 Commissions Revenue
106 Accounts Receivable
612 Depreciation Expense-Buildings
124 Office Supplies
622 Salaries Expense
128 Prepaid Insurance
637 Insurance Expense
167 Buildings
640 Rent Expense
168 Accumulated Depreciation-Buildings
650 Office Supplies Expense
209 Salaries Payable
684 Repairs Expense
688 Telephone Expense
307 Common Stock
318 Retained Earnings
319 Dividends
901 Income Summary
adjusting entries as of July 31:
a. Prepaid insurance of $400 expired this month.
b. At the end of the month, $1,525 of office supplies are still available.
c. This month's depreciation on buildings is $1,500.
d. Employees earned $100 of unpaid and unrecorded salaries as of month-end.
e. The company earned $1,150 of storage revenue that is not yet recorded at month-end.
Required:
Prepare the balance sheet at July 31.
Assets
Total Assets
Liabilities
Equity
Total Liabilities and Equity

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.