Monty Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. MONTY RESORT
TRIAL BALANCE
AUGUST 31, 2017
Debit Credit

Cash $25,900
Prepaid Insurance 10,800
Supplies 8,900
Land 22,000
Buildings 122,000
Equipment 18,000
Accounts Payable $10,800
Unearned Rent Revenue 10,900
Mortgage Payable 62,000
Common Stock 99,300
Retained Earnings 9,000
Dividends 5,000
Rent Revenue 78,200
Salaries and Wages Expense 44,800
Utilities Expenses 9,200
Maintenance and Repairs Expense
3,600
Totals $270,200 $270,200
Other data:
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2017.
2. An inventory count on August 31 shows $443 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 $3,472 was earned prior to August 31.
5. Salaries of $392 were unpaid at August 31.
6. Rentals of $873 were due from tenants at August 31. (Use Accounts Receivable account.)
7. The mortgage interest rate is 8% per year.
i. Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31.
ii. Prepare an adjusted trial balance on August 31.