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The general ledger of Zips Storage at January 1, 2021, includes the following account balances:
Accounts Debits Credits
Cash $ 24,600
Prepaid Insurance 12,000
Land 148,000
Accounts Payable $ 6,700
Deferred Revenue 5,800
Common Stock 143,000
Retained Earnings 44,500
Totals $200,000 $200,000
The following is a summary of the transactions for the year:
1. January 9 Provide storage services for cash, $134,100, and on account, $52,200.
2. February 12 Collect on accounts receivable, $51,500.
3. April 25 Receive cash in advance from customers, $12,900.
4. May 6 Purchase supplies on account, $9,200.
5. July 15 Pay property taxes, $8,500.
6. September 10 Pay on accounts payable, $11,400.
7. October 31 Pay salaries, $123,600.
8. November 20 Issue shares of common stock in exchange for $27,000 cash.
9. December 30 Pay $2,800 cash dividends to stockholders.
Required:
1. Set up the necessary T-accounts and enter the beginning balances from the
2. Record each of the summary transactions listed above.
3.
4. Prepare an unadjusted trial balance.
5. Record
on hand at the end of the year equal $2,900. Provide services of $11,800 related to cash
paid in advance by customers.
6. Post adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare an income statement for 2021 and a classified
9. Record closing entries.
10. Post closing entries
11. Prepare a post-closing trial balance.
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