Business, 16.10.2020 14:01 carruthselena

Splish Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. SPLISH RESORT TRIAL BALANCE AUGUST 31, 2020

Debit Credit
Cash $26,800
Prepaid Insurance 11,700
Supplies 9,800
Land 28,000
Buildings 128,000
Equipment 24,000
Accounts Payable $11,700
Unearned Rent Revenue 11,800
Mortgage Payable 68,000
Common Stock 106,200
Retained Earnings 9,000
Dividends 5,000
Rent Revenue 84,200
Salaries and Wages Expense 44,800
Utilities Expenses 9,200
Maintenance and Repairs Expense 3,600
$290,900 $290,900

Other data:

1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020.
2. An inventory count on August 31 shows $444 of supplies on hand.
3. Annual depreciation rates are
a. buildings (4%)
b. equipment (10%).
Salvage value is estimated to be 10% of cost.
4. Unearned Rent Revenue of $3,664 was earned prior to August 31.
5. Salaries of $340 were unpaid at August 31.
6. Rentals of $746 were due from tenants at August 31. (Use Accounts Receivable account.)
7. The mortgage interest rate is 8% per year.

Required:
Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31.

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Splish Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on A...

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