Prepare a post-closing trial balance.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:

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

 Required:

Prepare a post-closing trial balance.

 

 

 

 

Account Title

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

 

### 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:

**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
- **106** Accounts Receivable
- **124** Office Supplies
- **128** Prepaid Insurance
- **167** Buildings
- **168** Accumulated Depreciation—Buildings
- **209** Salaries Payable
- **307** Common Stock
- **318** Retained Earnings
- **319** Dividends
- **403** Commissions Revenue
- **612** Depreciation Expense—Buildings
- **622** Salaries Expense
- **637** Insurance Expense
- **640** Rent Expense
- **650** Office Supplies Expense
- **684** Repairs Expense
- **688** Telephone Expense
- **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
Transcribed Image Text:### 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: **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 - **106** Accounts Receivable - **124** Office Supplies - **128** Prepaid Insurance - **167** Buildings - **168** Accumulated Depreciation—Buildings - **209** Salaries Payable - **307** Common Stock - **318** Retained Earnings - **319** Dividends - **403** Commissions Revenue - **612** Depreciation Expense—Buildings - **622** Salaries Expense - **637** Insurance Expense - **640** Rent Expense - **650** Office Supplies Expense - **684** Repairs Expense - **688** Telephone Expense - **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
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