Sup $13 Problem 3-1A Lavio Lake Resort opened for business on April 1 with 5 air-conditioned cabins. The Unadjusted Trial Balance for the 3 months ending on June 30, 20X1 is shown on the following page. Below please find the June 30, 20X1 adjustments. 1. Insurance expires at the rate of $1,000 per month. 2. A physical count of the supplies remaining on June 30 shows $1,300 of supplies remaining on hand. 3. 4. 5. Rentals of $1,000 were earned in June but not yet recorded as of June 30. Annual (12 months) depreciation has been calculated as $5,000 on the cabins and $2,600 on the furniture. June Salaries of $600 have been earned by the employees, but will not be paid until July 3. 1 e 6. Half of the Unearned Rent has been earned as of June 30, 20X1. 7. The mortgage interest rate is 9% per annum (year). The mortgage was taken out on April 1, 20X1. (PxRxT) Instructions: (a) Prepare the General Ledger, use the T accounts on the following pages as a short cut for the General Ledger, by entering the June 30, 20X1 Unajusted Trial Balances account balances. Some accounts do not have balances, YET. (b) Journalize and post the adjusting entries on June 30 for the 3 month period April 1 through June 30. (c) Prepare an Adjusted Trial Balance as of June 30, 20X1 (d) From the amounts on the Adj. Trial Balance, prepare the Income Statement (with vertical analysis) for the 3- month period ending June 30, 20X1. See Objective 7 ate 2 NESCO LAKE RESORT Unadjusted Trial Balance June 30, 20X1 Acct # 101 Account Name DEBIT CREDIT Cash 19,600 pr 112 Accounts Receivable 2,000 Ac 126 Supplies 3,000 130 Prepaid Insurance 12,000 to 150 Land 60,000 160 Cabins 522,000 161 Acc. Depr. - Cabins 0 170 Furniture 52,000 171 Acc. Depr. - Furniture 0 201 Accounts Payable 208 Unearned Rent 212 Salaries Payable 230 Interest Payable 275 Mortgage Payable 301 P. Bunyan, Capital 10,200 9,400 0 0 380,000 250,000 5,000 306 P. Bunyan, Drawing 90,000 429 Rent Revenue 0 520 Supplies Expense 3,600 522 Repair Expense 51,000 526 Salaries Expense 0 530 Depreciation Expense - Cabins 0 535 Depreciation Expense - Furniture 0 540 Insurance Expense 545 Utilities Expense 9,400 0 590 Interest Expense 739,600 739,600 TOTAL (c) CORE NESCO LAKE RESORT Adjusted Trial Balance NA nt se Acct # 101 112 Cash Accounts Receivable 126 Supplies 130 Prepaid Insurance 150 Land Acc 160 Cabins 161 Acc. Depr. - Cabins 170 Furniture 171 Acc. Depr. - Furniture 201 Accounts Payable 208 Unearned Rent 212 Salaries Payable 230 Interest Payable chse 275 Mortgage Payable ve 301 P. Bunyan, Capital 306 P. Bunyan, Drawing pl 429 Pen ece re June 30, 20X1 Account Name Rent Revenue 520 Supplies Expense 522 Repair Expense 526 Salaries Expense 530 Depreciation Expense - Cabins 535 Depreciation Expense - Furniture 540 Insurance Expense 545 Utilities Expense 590 Interest Expense TOTAL DEBIT CREDIT (d) Show the Income Statements in PROPER FORMAT (remember to include a vertical analysis of the Income Statement).