Uhura Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows (in thousands).

Other data:
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2015.
2. An inventory count on August 31 shows ¥650 of supplies on hand.
3. Annual depreciation rates are buildings (4%) and equipment (10%). Residual value is estimated to be 10% of cost.
4. Unearned rent revenue of ¥3,800 was earned prior to August 31.
5. Salaries and wages of ¥375 were unpaid at August 31.
6. Rentals of ¥800 were due from tenants at August 31.
7. The mortgage note is dated 1/1/2015. The mortgage interest rate is 8% per year.
Instructions

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

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

Transcribed Image Text:

UHURA RESORT TRIAL BALANCE AUGUST 31, 2015 Debit Credit Cash 19,600 Prepaid Insurance 4,500 Supplies 2,600 Land 20,000 Buildings 120,000 Equipment 16,000 Accounts Payable 4,500 Unearned Rent Revenue 4,600 Mortgage Payable 50,000 Share Capital-Ordinary 100,000 Retained Earnings 0 Dividends 5,000 Rent Revenue 86,200 Salaries and Wages Expense 44,800 Utilities Expense 9,200 Maintenance and Repairs Expense 3,600 245,300 245,300