On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the companies first month. July 2Plume invested $30,000 cash and buildings worth $150,000 in the company in exchange for its common stock.July 3The 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 a 12-month insurance policy. Coverage begins on July 11.July 14The company paid $1,000 cash for two weeks' salaries earned by employees.July 24The company collected $9,800 cash for storage revenue from customers.July 28The company paid $1,000 cash for two weeks' salaries earned by employees.July 29The company paid $950 cash for minor repairs to buildings.July 30The company paid $400 cash for this month's telephone bill.July 30The company paid $2,000 cash in dividends. The company's chart of accounts follows: 101Cash403Commissions Revenue106Accounts Receivable612Depreciation Expense—Buildings124Office Supplies622Salaries Expense128Prepaid Insurance637Insurance Expense167Buildings640Rent Expense168Accumulated Depreciation—Buildings650Office Supplies Expense209Salaries Payable684Repairs Expense307Common Stock688Telephone Expense318Retained Earnings901Income Summary319Dividends 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 income statement for the month of July 31. Revenues: Expenses: Total expenses Net income ### ACC 211: Comprehensive Problem Set#### Comprehensive Problem (Assignment) - Accounting Principles---**Comprehensive Problem Set**On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the company's first month.**Transactions:**- **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:**| Account Number | Account Name | Account Number | Account Name ||----------------|-----------------------------------|----------------|----------------------------------|| 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 | | |

Journal Entries: When the business transactions are recorded in the primary book of account…

Answered: July 1, Lula Plume created a new…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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 income statement for the month of July 31.




Revenues:


Expenses:









Total expenses
Net income

### ACC 211: Comprehensive Problem Set

#### Comprehensive Problem (Assignment) - Accounting Principles

---

**Comprehensive Problem Set**

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

**Transactions:**

- **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:**

| Account Number | Account Name | Account Number | Account Name |
|----------------|-----------------------------------|----------------|----------------------------------|
| 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 | | |

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