ACCT-1001 Financial Accounting 1 Part I -Take Home Practical Problem Application Problem: On July 1, 2020, Amy Young created a new self-storage business called Young Co. These activities occurred during the company's first month: July 1 Young invested $40,000 cash, land of $320,000 and buildings worth $240,000 into the business. July 2 Rented equipment for the first month by paying $3,600 in cash. July 5 Purchased $4,600 of office supplies for cash. July 10 Paid $10,800 for the premium on a one-year insurance policy effective today. July 14 Paid an employee $1,800 for two weeks/ salary. July 24 Collected $17,600 for storage revenue from customers in cash. July 28 Paid another $1,800 for two weeks' salary. July 29 Paid the month's $600 phone bill. July 30 Received a bill for $1,700 to repair a leaky roof on one of Young Co.'s self-storage sheds and charged it on account: July 31 Young withdrew $3,200 cash from the business for personal use. 128 The company's chart of accounts included these accounts: 101 Cash 302 106 Accounts Receivable 401 124 Office Supplies 606 Prepaid Insurance 170 Land 173 Buildings 174 Accumulated Depreciation Buildings 201 Accounts Payable 209 Salaries Payable 301 Amy Young. Capital Amy Young, Withdrawals Storage Revenue Depreciation Expense, Buildings Salaries Expense Insurance Expense Equipment Rental Expense Office Supplies Expense Repairs Expense Telephone Expense Income Summary a Required: 1. The General Ledger has been set up with the accounts above in the balance column format. Prepare journal entries in the General Journal to record the transactions for July and post them to the accounts in the General Ledger. Record prepaid and unearned items in balance sheet accounts Remember to complete the Post Reference columns. Utilize the Worksheet provided to prepare an Unadjusted Trial Balance after Step 2. Complete the Worksheet as you do Steps 4 and 5. Identify Net Income (Loss) and use $$$ signs, single and double lines appropriately Use the following information to journalize and post the adjustments (AJE) for the month: $600 of insurance coverage has expired in the first month. b. There was $3,100 of office supplies on hand at the end of the month. Record what got used. C. Depreciation on the buildings was estimated to be $2,400 for the month. d. The employee had earned $360 of unpaid and unrecorded salary. e. The company had earned $1,900 of storage revenue that had not yet been billed to the customer Prepare an Income Statement, Statement of Changes in Equity, and a Balance Sheet in the proper format using $S$ signs, single and double lines appropriately. Remember this is the first month of operations. Prepare Journal entries in the General Journal to close the temporary accounts and post (CE) them to the accounts in the General Ledger. Prepare a Post-closing Trial Balance in the proper format using $$$ signs, single and double lines appropriately. Rem em ber this should match your balances in the General Ledger. ACCT-1001 Financial Accounting 1 Part I -Take Home Practical Problem Application Problem: On July 1, 2020, Amy Young created a new self-storage business called Young Co. These activities occurred during the company's first month: July 1 Young invested $40,000 cash, land of $320,000 and buildings worth $240,000 into the business. July 2 Rented equipment for the first month by paying $3,600 in cash. July 5 Purchased $4,600 of office supplies for cash. July 10 Paid $10,800 for the premium on a one-year insurance policy effective today. July 14 Paid an employee $1,800 for two weeks/ salary. July 24 Collected $17,600 for storage revenue from customers in cash. July 28 Paid another $1,800 for two weeks' salary. July 29 Paid the month's $600 phone bill. July 30 Received a bill for $1,700 to repair a leaky roof on one of Young Co.'s self-storage sheds and charged it on account: July 31 Young withdrew $3,200 cash from the business for personal use. 128 The company's chart of accounts included these accounts: 101 Cash 302 106 Accounts Receivable 401 124 Office Supplies 606 Prepaid Insurance 170 Land 173 Buildings 174 Accumulated Depreciation Buildings 201 Accounts Payable 209 Salaries Payable 301 Amy Young. Capital Amy Young, Withdrawals Storage Revenue Depreciation Expense, Buildings Salaries Expense Insurance Expense Equipment Rental Expense Office Supplies Expense Repairs Expense Telephone Expense Income Summary a Required: 1. The General Ledger has been set up with the accounts above in the balance column format. Prepare journal entries in the General Journal to record the transactions for July and post them to the accounts in the General Ledger. Record prepaid and unearned items in balance sheet accounts Remember to complete the Post Reference columns. Utilize the Worksheet provided to prepare an Unadjusted Trial Balance after Step 2. Complete the Worksheet as you do Steps 4 and 5. Identify Net Income (Loss) and use $$$ signs, single and double lines appropriately Use the following information to journalize and post the adjustments (AJE) for the month: $600 of insurance coverage has expired in the first month. b. There was $3,100 of office supplies on hand at the end of the month. Record what got used. C. Depreciation on the buildings was estimated to be $2,400 for the month. d. The employee had earned $360 of unpaid and unrecorded salary. e. The company had earned $1,900 of storage revenue that had not yet been billed to the customer Prepare an Income Statement, Statement of Changes in Equity, and a Balance Sheet in the proper format using $S$ signs, single and double lines appropriately. Remember this is the first month of operations. Prepare Journal entries in the General Journal to close the temporary accounts and post (CE) them to the accounts in the General Ledger. Prepare a Post-closing Trial Balance in the proper format using $$$ signs, single and double lines appropriately. Rem em ber this should match your balances in the General Ledger