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

Question:

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

                                                

Other data:
  1. The balance in prepaid insurance is a one-year premium paid on June 1, 2014.
  2. An inventory count on August 31 shows $450 of supplies on hand.
  3. Annual depreciation rates are buildings (4%) and equipment (10%). Salvage value is estimated to be 10% of cost.
  4. Unearned Rent Revenue of $3,800 was earned prior to August 31.
  5. Salaries of $375 were unpaid at August 31.
  6. Rentals of $800 were due from tenants at August 31.
  7. 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.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1118147290

15th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

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