ACCOUNTING CYCLE ASSIGNMENT Service Business Accounting Cycle On July 1, 2015 a new incorporated self-storage business, 2015 a new incorporated...

Income Summary

Transaction

July

1         $37,291of common shares in the new company are sold for cash.

1         Purchased land and building, worth $120,000 and $240,000 respectively by borrowing all the funds from the bank on a long-term loan.

1         Paid $10,800 for the premium on a one-year insurance policy effective today.

2         Purchased $5,600 of office supplies for cash.           

14       Paid an employee $1,800 for two weeks' salary.

21       Summarized and recorded the billings to customers for the first three weeks of July for storage fees earned.    Billings totaled $15,000.

28       Received $9,000 from customers in partial settlement of accounts billed on the 21st.

28       Paid another $1,800 for two weeks' salary.

29       Paid the month's $600 phone bill.

30      Repaired leaking roof for $1,700 on account.account.

31       Paid out dividends to shareholders of $3,200.

31       Made a payment to the bank of $1,000 interest and $4,000 to pay the amount owing for the bank loan.

Use the following information to journalize and post the adjustments for the month.

a.        One month's insurance coverage was consumed.

b.        There was $3,100 of office supplies on hand at the end of the month.

c.        Depreciation on the buildings was estimated to be $2,400 per month.

d.        The employee had earned $360 of unpaid and unrecorded salary.

e.        The company had earned $1,900 of storage fees that had not yet been billed.

REQUIRED:

1. Analyze each transaction and record it in the general journal.

2. Post the transactionsto T accounts.transactionsto T accounts.

3. how to do an adjusted trial balance as at July 31.

4. how to do an income statement for the month.

5. how to do a statement of changes in equity.

6. how to do a classified statement of financial position. (Note:$48,000 of the bank loan is due within the next year.)

7. Prepare closing journal entries.      

9. Post the closing entries to T accounts.

10. how to do a post--closing trial balanc