make the accounting cycle
Accounting Cycle Assignmentt Updated Fall 2021 ACCOUNTING CYCLE ASSIGNMENT Due Nov 29th, 2021 Service Business Accounting Cycle On July 1, 2021 a new incorporated self-storage business, _(your last name)__ Storage Inc. is formed. The chart of accounts for _(your last name)__ Storage Inc. is listed below. Follow the instructions to complete the accounting records for the month of July. __(your last name)__ STORAGE INC. Chart of Accounts ASSETS 101 Cash 111 Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Land 141 Buildings 142 Accumulated Depreciation - Buildings LIABILITIES 202 Accounts Payable 211 Salaries Payable 222 Bank Loan Payable OWNERS’ EQUITY 301 Common Shares 309 Retained Earnings 311 Dividends REVENUE 410 Storage Fees Earned EXPENSES 511 Salaries Expense 517 Supplies Expense 523 Depreciation Expense 525 Interest Expense 526 Insurance Expense 532 Telephone Expense 535 Repairs Expense 601 Income Summary TRANSACTIONS Worth 8 marks of the Final Grade July 1 $XX,XXX of 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 roofs for $1,700 on 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 transactions to T accounts. 3. Prepare an adjusted trial balance as at July 31. 4. Prepare an income statement for the month. 5. Prepare a statement of changes in equity. 6. Prepare a classified statement of financial position. (Note: $48,000 of the bank loan is due within the next year.) 7. Prepare closing journal entries. 8. Post the closing entries to T accounts. 9. Prepare a post-closing trial balance. The $xx,xxx should match the last five digits from your student number. If it happens to have a lot of zeros in your number contact me and I will give you a number. ↓