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Use the balance column format to set up each ledger account listed in its chart of accounts.

Use the balance column format to set up each ledger account listed in its chart of accounts.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter2: The Accounting Information System
Section: Chapter Questions
Problem 56APSA: Problem 2-56A Analyzing Transactions Luis Madero, after working for several years with a large...
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Use the balance column format to set up each ledger account listed in its chart of accounts.
Date Debit Credit Balance Da Date Debit Credit Balance Da Date Debit Credit Balance
Transcribed Image Text:Date Debit Credit Balance Da Date Debit Credit Balance Da Date Debit Credit Balance
ACC 211 Comprehensive Problem (Assignment) Accounting Principles Comprehensive Problem Set 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 39 The company paid $2,000 cash in dividends. The company's chart of accounts follows: 101 Cash 403 Commissions Revenue Depreciation Expense-Computer 612 Equipment 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 622 Salaries Expense 637 Insurance Expense 640 Rent Expense Accumulated Depreciation-Computer 168 Equipment 650 Office Supplies Expense 209 Salaries Payable 307 Common Stock 684 Repairs Expense 688 Telephone Expense 901 Income Summary 318 Retained Earnings 319 Dividends.
Transcribed Image Text:ACC 211 Comprehensive Problem (Assignment) Accounting Principles Comprehensive Problem Set 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 39 The company paid $2,000 cash in dividends. The company's chart of accounts follows: 101 Cash 403 Commissions Revenue Depreciation Expense-Computer 612 Equipment 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 622 Salaries Expense 637 Insurance Expense 640 Rent Expense Accumulated Depreciation-Computer 168 Equipment 650 Office Supplies Expense 209 Salaries Payable 307 Common Stock 684 Repairs Expense 688 Telephone Expense 901 Income Summary 318 Retained Earnings 319 Dividends.
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General ledger accounts or T accounts are being prepared on the basis of recorded journal entries. On the basis of these balances, trial balance is prepared.

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