Menu
support@graduatecourseshelp.com
+1(805) 568 7317

insurance expires at the rate of 300 per month 592198

Maquoketa River Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows.

MAQUOKETA RIVER RESORT Trial Balance August 31, 2014

Account Number

Debit

Credit

101

Cash

$ 19,600

126

Supplies

3,300

130

Prepaid Insurance

6,000

140

Land

25,000

143

Buildings

125,000

149

Equipment

26,000

201

Accounts Payable

$ 6,500

208

Unearned Rent Revenue

7,400

275

Mortgage Payable

80,000

301

Owner’s Capital

100,000

306

Owner’s Drawings

5,000

429

Rent Revenue

80,000

622

Maintenance and Repairs Expense

3,600

726

Salaries and Wages Expense

51,000

732

Utilities Expense

9,400

$273,900

$273,900

In addition to those accounts listed on the trial balance, the chart of accounts for Maquoketa River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 620 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

1. Insurance expires at the rate of $300 per month.

2. A count on August 31 shows $800 of supplies on hand.

3. Annual depreciation is $6,000 on buildings and $2,400 on equipment.

4. Unearned rent revenue of $4,800 was earned prior to August 31.

5. Salaries of $400 were unpaid at August 31.

6. Rentals of $4,000 were due from tenants at August 31. (Use Accounts Receivable.)

7. The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.)

Instructions

(a) Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31.

(b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.)

(c) Prepare an adjusted trial balance on August 31.

(d) Prepare an income statement and an owner’s equity statement for the 3 months ending August 31 and a balance sheet as of August 31.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now