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Space Jam Storage offers storage space and delivery services for customers. Space Jam Storage has already completed most of the transactions for the month and posted them to the general ledger. The following transactions during December 2018 have not yet been prepared.

Dec 2 Prepaid 12,000 for one year of insurance in advance

Dec 5 Paid 1400 cash for regular maintenance on delivery vehicles

Dec 12 The owner, Stephen Bugs, withdrew 3500 cash from the business for personal use

Dec 18 Received 2200 cash payment from a customer for future storage services

Dec 23 Paid 1000 to reduce the bank loan, of which 870 was principal and the rest was interest

Dec 28 Received 450 cash from a customer who owed money for previous services

A) prepare the journal entries for the transactions for the month of December. The chart of accounts is one the next page.(chart B)

DAte	Account Title and explanation	Debit	Credit

B) Post the journal entries from part A) to the general ledger. The chart of accounts is shown below for your reference.

Chart B

ASSETS
Cash	101
A/R	105
Prepaid Insurance	110
Equipment	120
Accumulated Depreciation-Equipment	125
LIABILITIES
A/P	200
Salaries Payable	210
Unearned Revenue	220
Notes Payable	250
OWNERS EQUITY
Bugs,Capital	300
Bugs,WIthdrawals	310
Income Summary	315
REVENUE
Service Revenue	400
EXPENSES
Maint Expense	500
Deprec Expense	520
Interest Expense	540
Insurance Expense	560
Salaries Expense	570

Create General Ledger for all accounts

C) Prepare a 6 column worksheet, starting with the account balances from the general ledger in part b) Space jam storage had the following year end adjustments

Dec 31 Provided 1500 worth of services to customer who paid in advance

Dec 31 One month of insurance worth 1000 has been used

Dec 31 One month of depreciation is 500

Dec 31 Accrued salaries owed to employee worth 3370

D) Prepare the income statement

E)Prepare the statement of owners equity

F)Prepare the balance sheet

G0 Record the journal entries for the adjusting and closing transactions. Use the income summary method. POst those entries in the general ledger above from part B)

H) Prepare the post closing trial balance

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