The general ledger of Zips Storage at January 1, 2021, includes the following account balances:Accounts                            Debits            CreditsCash                                  $ 24,600Accounts Receivable           15,400Prepaid Insurance               12,000Land                                  148,000Accounts Payable                                    $ 6,700Deferred Revenue                                      5,800Common Stock                                       143,000Retained Earnings                                     44,500Totals                               $200,000        $200,000The following is a summary of the transactions for the year:1. January 9 Provide storage services for cash, $134,100, and on account, $52,200.2. February 12 Collect on accounts receivable, $51,500.3. April 25 Receive cash in advance from customers, $12,900.4. May 6 Purchase supplies on account, $9,200.5. July 15 Pay property taxes, $8,500.6. September 10 Pay on accounts payable, $11,400.7. October 31 Pay salaries, $123,600.8. November 20 Issue shares of common stock in exchange for $27,000 cash.9. 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 remainingon hand at the end of the year equal $2,900. Provide services of $11,800 related to cashpaid in advance by customers.6. Post adjusting entries.7. Prepare an adjusted trial balance.8. Prepare an income statement for 2021 and a classified balance sheet as of December 31, 2021.9. Record closing entries.10. Post closing entries11. Prepare a post-closing trial balance.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The general ledger of Zips Storage at January 1, 2021, includes the following account balances:

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

The following is a summary of the transactions for the year:
1. January 9 Provide storage services for cash, $134,100, and on account, $52,200.
2. February 12 Collect on accounts receivable, $51,500.
3. April 25 Receive cash in advance from customers, $12,900.
4. May 6 Purchase supplies on account, $9,200.
5. July 15 Pay property taxes, $8,500.
6. September 10 Pay on accounts payable, $11,400.
7. October 31 Pay salaries, $123,600.
8. November 20 Issue shares of common stock in exchange for $27,000 cash.
9. 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 2021 and a classified balance sheet as of December 31, 2021.
9. Record closing entries.
10. Post closing entries
11. Prepare a post-closing trial balance.

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