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

Other data:

1. The balance in prepaid insurance is a 1-year premium paid on June 1, 2022.

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 should be recognized as revenue 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 1/1/2022. 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, 2022 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 Reyenue 4,600 Mortgage Payable 50,000 Share Capital-Ordinary Retained Earnings 100,000 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