use T-accounts

Problem 4-13B Performing the steps in the accounting cycle LO2, 3, 4, 5, 6 CHECK FIGURES: 4. Profit = $5,140: Total assets = $604,000; 6. Post-closing trial balance = $606,400 On July 1, 2020, Amy Young created a new self-storage business called Young Co. These events occurred dur- ing 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 are 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. 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. 306 CHAPTER 4 Completing the Accounting Cycle and Classifying Accounts 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