On July 1, Lula Plume created a new self-storage business, Self-Storage Co. The following transactions occurred during the company's 1st month of operations.
July  1 Plume invested $30,000 cash and building worth $130,000 in the company
 2 The Company purchased equipment costing $25,000 on credit
 5 The Company purchased $2,100 of office supplies for cash
 10 The company paid $7,200 cash for the premium on a 12 month insurance policy
   Coverage began on July 11.
 14 The Company paid an employee $1,500 for two week's salary earned
 15 The Company collected $10,000 cash for storage fees from customers
 20 The Company billed a company $1,500 for a new rental.
 22 The Company paid a 12,000 to settle a portion of the equipment purchased in 2
 30 The company paid $950 for this month's telephone bill
 31 Plume withdrew $2,700 cash for personal use

Required
1 Prepare journal entries to record the transactions for July and post them to the ledger accounts (i.e. T-accounts)
2 Prepare the 10-step worksheet taking into consideration the adjustments below.
a Prepaid insurance of $500 has expired this month
b At the end of the month $1,525 of office supplies are still available
c The month's depreciation on building was $1,500 and on the equipment was 500
d An employee earned $200 of unpaid and unrecorded salary as of month end
e The Company earned $1,150 of storage fees that are not yet billed as of month-end
3 Prepare journal entries for the adjustments above

Answer rating: 100% (QA)

1 Prepare Journal Entries Date Account Debit Credit Jul 1 Cash 30000 Building 130000 Owners Equity L... View the full answer