Question: The trial balance for Hanna Resort Limited on August 31

The trial balance for Hanna Resort Limited on August 31 is as follows:
Additional information:
1. The balance in Prepaid Rent includes payment of the final month's rent and rent for August 2014.
2. An inventory count on August 31 shows $650 of supplies on hand.
3. Buildings and equipment are depreciated straight-line. From date of purchase, the buildings have an estimated useful life of 25 years, and the equipment has an estimated useful life of 10 years. For both asset categories, residual value is estimated to be I 0% of cost.
4. Rent revenue includes amounts received for September rentals in the amount of SS,OOO. Of the unadjusted
Unearned Rent Revenue of $4,600, one half was earned prior to August 31.
5. Salaries ofS375 were unpaid at August 31.
6. Rental fees of S800 were due from tenants at August 31.
7. The note payable interest rate is 8% per year, and the note has been outstanding since December I, 2013.
(a) Journalize the adjusting entries on August 31 for the three-month period June 1 to August 31.
(b) Prepare an adjusted trial balance as at August 31.

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  • CreatedSeptember 18, 2015
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