Prepare a post-closing trial balance.
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 |
|
612 |
|
124 |
Office Supplies |
622 |
Salaries Expense |
128 |
Prepaid Insurance |
637 |
Insurance Expense |
167 |
Buildings |
640 |
Rent Expense |
168 |
|
650 |
Office Supplies Expense |
209 |
Salaries Payable |
684 |
Repairs Expense |
307 |
Common Stock |
688 |
Telephone Expense |
318 |
|
901 |
Income Summary |
319 |
Dividends |
|
|
- 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 a post-closing
|
||
|
||
Account Title |
Debit |
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
Step by step
Solved in 2 steps with 1 images