Zara River Resort opened for business on March 1, 2020 with eight air conditioned units. Its...

  

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Zara River Resort opened for business on March 1, 2020 with eight air conditioned units. Its trial balance before adjustment on May 31,2020 is as follows: Sadia River Resort Number Particulars 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Cash Trail Balance Trial Balance at May 31, 2020 Supplies Prepaid Insurance Land Cottages Furniture Account Payable Unearned Rent Revenue Mortgage Payable P.S. Capital P.S. Drawing Rent Revenue Repair Expense Salaries Expense Utility Expense Debit 65,600 4,300 4,000 25,000 1,05,000 26,000 Instructions: Prepare the adjusting journal entries 5,000 3,600 5,000 9,500 2.53,000 Credit 6,500 6,000 80,500 100,000 60,000 2.53,000 Other information: (1) Insurance policy is for 4 years (2) Account on August 31 Shows Tk.800 of supplies has now on hand (3) Furniture has 3 years life with no salvage value which cost is Tk 26,000 (4)Tk. 6,500 of the balance in the unearned rent revenue account remain unearned at the end of the month. (5) Utility expense is accrued Tk. 2000 per month (6) Rentals of Tk. 3200 were due from tenants at May 31 (7) The mortgage interest rate is 5% per year. (The mortgage was taken out on May 1) [4] Zara River Resort opened for business on March 1, 2020 with eight air conditioned units. Its trial balance before adjustment on May 31,2020 is as follows: Sadia River Resort Number Particulars 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Cash Trail Balance Trial Balance at May 31, 2020 Supplies Prepaid Insurance Land Cottages Furniture Account Payable Unearned Rent Revenue Mortgage Payable P.S. Capital P.S. Drawing Rent Revenue Repair Expense Salaries Expense Utility Expense Debit 65,600 4,300 4,000 25,000 1,05,000 26,000 Instructions: Prepare the adjusting journal entries 5,000 3,600 5,000 9,500 2.53,000 Credit 6,500 6,000 80,500 100,000 60,000 2.53,000 Other information: (1) Insurance policy is for 4 years (2) Account on August 31 Shows Tk.800 of supplies has now on hand (3) Furniture has 3 years life with no salvage value which cost is Tk 26,000 (4)Tk. 6,500 of the balance in the unearned rent revenue account remain unearned at the end of the month. (5) Utility expense is accrued Tk. 2000 per month (6) Rentals of Tk. 3200 were due from tenants at May 31 (7) The mortgage interest rate is 5% per year. (The mortgage was taken out on May 1) [4]

Answer rating: 100% (QA)

Adjusting entries Date Accounts head and Explanation 1 Insurance expense 2 3 4 5 6 7 Prepaid i... View the full answer