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Problem 3-6B (Continued)
Part 3
SAFE STORAGE CO.
Unadjusted Trial Balance
July 31, 2015
No. Account Title Debit Credit
Problem 3-6B (Continued)
Part 4
Adjusting entries
July 31 Insurance Expense ...........................................637 400
Prepaid Insurance ....................................128 400
Problem 3-6B (Continued)
Part 4
SAFE STORAGE CO.
Adjusted Trial Balance
July 31, 2015
No. Account Title Debit Credit
Problem 3-6B (Continued)
Part 5
SAFE STORAGE CO.
Income Statement
For Month Ended July 31, 2015
Storage fees earned ................................... $10,950
Expenses
Problem 3-6B (Continued)
Part 5
SAFE STORAGE CO.
Balance Sheet
July 31, 2015
Assets
Problem 3-6B (Continued)
Part 6
Closing entries
July 31 Storage Fees Earned ................................. 401 10,950
Income Summary .................................. 901 10,950
To close the revenue account.
Retained Earnings ................................ 318 2,725
To close the Income Summary.
31 Retained Earnings ..................................... 318 2,000
Dividends ............................................... 319 2,000
To close the dividends account.
Part 7
Problem 3-6B (Continued)
Ledger as of July 31
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
July 1 30,000 30,000
Date Explanation PR Debit Credit Balance
July 31 Adjusting 1,150 1,150
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
July 5 2,400 2,400
Problem 3-6B (Continued)
Common Stock Acct. No. 307
Date Explanation PR Debit Credit Balance
July 1 180,000 180,000
Retained Earnings Acct. No. 318
31 Adjusting 1,150 10,950
31 Closing 10,950 0
Depreciation Expense—Buildings Acct. No. 606
Date Explanation PR Debit Credit Balance
July 31 Adjusting 1,500 1,500
31 Closing 400 0
Problem 3-6B (Concluded)
Office Supplies Expense Acct. No. 650
Date Explanation PR Debit Credit Balance
July 31 Adjusting 875 875
Problem 3-7B (15 minutes)
1.
Z
6.
F
11.
A
16.
E
2.
A
7.
D
12.
E
17.
Z
3.
B
8.
E
13.
E
18.
A
4.
A
9.
C
14.
G
19.
C
5.
C
10.
C
15.
A
20.
Z
