Maquoketa Valley Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is presented here.

Other data:1. Insurance expires at the rate of $450 per month.2. A count of supplies on August 31 shows $700 of supplies on hand.3. Annual depreciation is $6,600 on buildings and $4,000 on equipment.4. Unearned rent of $5,000 was earned prior to August 31.5. Salaries of $600 were unpaid at August 31.6. Rentals of $1,600 were due from tenants at August 31. (Use Accounts Receivable.)7. The mortgage interest rate is 9% per year. (The mortgage was taken out 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 T accounts. Enter the trial balance amounts and post the adjusting entries.(c) Prepare an adjusted trial balance on August 31.(d) Prepare an income statement and a retained earnings statement for the 3 months ended August 31 and a classified balance sheet as of August 31.(e) Identify which accounts should be closed on August31.

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MAQUOKETA VALLEY RESORT Trial Balance August 31, 2012 Credit Debit $ 24,600 Cash Prepaid Insurance Supplies Land 5,400 4,300 40,000 132,000 36,000 Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock $ 6,500 6,800 120,000 100,000 Dividends 5,000 Rent Revenue 80,000 Salaries and Wages Expense Utilities Expense Maintenance and Repairs Expense 53,000 9,400 3,600 $313,300 $313,300