On July 1, Lula Plume created a new self-storage business,


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

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

3Prepare journal entries for the adjustments above
4Prepare journal entries to close the temporary accounts. 
5Prepare  post-closing trial balance

It’s that simple.Pay only when you are satisfied.

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