Splish Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August
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Question:
Splish Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows.
SPLISH RESORT | ||||||
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. |
(a)
Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
No. | Date | Account Titles and Explanation | Debit | Credit |
1. | Aug. 31 | |||
2. | Aug. 31 | |||
3. (a) | Aug. 31 | |||
3. (b) | Aug. 31 | |||
4. | Aug. 31 | |||
5. | Aug. 31 | |||
6. | Aug. 31 | |||
7. | Aug. 31 | |||
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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