On January 1,2008, Jim Bean created a new self-storage business, Keepsake Co. The following transactions occurred during the company's first month.
Jan.1 Beans invested $25,000 cash and buildings worth $125,000 in the company in exchange for common stock.
Jan.2 The company rented equipment by paying $2000 cash for the first months (Jan.'s) rent.
Jan 5 The company purchased $2,300 of office supplies for cash.
Jan 10 The company paid $5,400 cash for the premium on a 12- month insurance policy. Coverage begins on Jan.11
Jan 14 The company paid an employee $900 cash for two weeks' salary earned,
Jan 24 The company collected $8,000 cash for storage fees earned from cusomers.
Jan 28 The company paid $900 cash for two weeks' salary earned by an employee.
Jan 29 The company paid $850 cash for minor repairs to a leaking roof.
Jan 30 The company paid $300 cash for this months telephone bill.
Jan 31 The company paid $1,600 cash for dividends .
* The companies chart of accounts follow : 101 CASH , 106 ACCOUNTS RECEIVABLE, 124 OFFICE SUPPLIES, 128 PREPAID INSURANCE, 173 BUILDINGS, 307 COMMON STOCK, 319 DIVIDENDS, 401 STORAGE FEES EARNED, 622 SALARIES EXPENSE, 648 REPAIRS EXPENSE, 688 TELEPHONE EXPENSE, 640 RENT EXPENSE.
REQUIRED !!!
1. Prepare journal entries to record the transactions for January and post them to the ledger accounts. Record prepaid items in balance sheet accounts.
2. Prepare an unadjusted trial balance as of January 31