On July 1, 2020, Amy Young created a new self-storage business called Young Co. These events occurred during the company?s first month:

The company?s chart of accounts included these accounts:

Required

1. Set up each of the listed accounts. Note: Your instructor will tell you to use either the balance column format or T-accounts.

2. Prepare journal entries to record the transactions for July and post them to the accounts. Record prepaid and unearned items in balance sheet accounts.

3. Use the following information to journalize and post the adjustments for the month:

a. Two-thirds of one month?s insurance coverage was used.

b. $3,100 of office supplies were 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 revenue that had not yet been billed.

4. Prepare an income statement, a statement of changes in equity, and a classified balance sheet.

5. Prepare journal entries to close the temporary accounts and post them to the accounts.

6. Prepare a post-closing trial balance.

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Young invested $40,000 cash and land and buildings worth $320,000 and $240,000, respectively. 2 Rented equipment by paying $3,600 rent for the first month. July 5 Purchased $4,600 of office supplies for cash. 10 Paid $10,800 for the premium on a one-year insurance policy effective today. Paid an employee $1,800 for two weeks' salary. 14 24 Collected $17,600 of storage revenue from customers. Paid another $1,800 for two weeks' salary. 28 Paid the month's $600 phone bill. 29 Repaired leaking roof for $1,700 on account. 30 Young withdrew $3,200 cash from the business for personal use. 31 101 Accounts Receivable 302 Amy Young, Withdrawals 401 Cash 106 Office Supplies Prepaid Insurance Storage Revenue 606 Depreciation Expense, Buildings 622 Salaries Expense 124 128 Insurance Expense 640 Equipment Rental Expense 170 Land 637 Buildings Accumulated Depreciation, Buildings 201 173 Office Supplies Expense 684 174 650 Accounts Payable Repairs Expense 688 Salaries Payable 209 Telephone Expense 901 301 Amy Young, Capital Income Summary