Reference no: EM131807881

Problem -

July

1 $70936 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 $25,000.

28 Received $22,000 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.

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.

Analyze each transaction and record it in the general journal.