On July 1, 2023, 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 buildings 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.

The company’s chart of accounts included these accounts:
101 Cash
106 Accounts Receivable
124 Office Supplies
128 Prepaid Insurance
170 Land
173 Buildings
174 Accumulated Depreciation, Buildings
201 Accounts Payable
209 Salaries Payable
301 Amy Young, Capital
302 Amy Young, Withdrawals
401 Storage Revenue
606 Depreciation Expense, Buildings
622 Salaries Expense
637 Insurance Expense
640 Equipment Rental Expense
650 Office Supplies Expense
684 Repairs Expense
688 Telephone Expense
901 Income Summary

Required

1. Set up each of the listed 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:

• Two-thirds of one month’s insurance coverage was used.
• $3,100 of office supplies were on hand at the end of the month.
• Depreciation on the buildings was estimated to be $2,400 per month.
• The employee had earned $360 of unpaid and unrecorded salary.
• 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.