On July 1, 2017, Amy Young created a new self-storage business called Young Co, these events... 1 answer below »

On July 1, 2017, Amy Young created a new self-storage business called Young Co, these events occurred during the company’s first month

July 1 Young invested $40,000 cash and land and building worth $320,000 and

$240,000, respectively

2 Rented equipment by paying $3,600 rent for the first month

5 Purchased $4,600 of office supplies for cash

10 Paid $10,800 for the premium on a one-year insurance policy effective today

14 Paid an employee $1,800 for two weeks’ salary

24 Collected $ 17,600 of storage revenue from customers

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 Young withdrew $3,200 cash from the business for personal use 10 marks

The Company’s chart of accounts included these accounts

Required

1. Set up each of the listed accounts for Balance format ledger. 10 marks

2. Prepare journal entries to record the transactions for July and post them to the 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. There were $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 $300 of unpaid and unrecorded salary.

e. The company had earned $1,000 of storage revenue that had not yet been billed 5marks

4 Prepare an adjusted trial balance. 10 marks

4. Prepare an income statement, a statement of change in equity and balance sheet 15 marks

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