Additional information: 1. The company pays $6,360 for its annual insurance policy on March 31 of...

  

Transcribed Image Text:

Additional information: 1. The company pays $6,360 for its annual insurance policy on March 31 of each year. 2. A count shows $560 of supplies on hand on August 31, 2014. 3. The buildings have an estimated useful life of 50 years. 4. The furniture has an estimated useful life of 10 years. 5. Customers must pay a $100 deposit if they want to book a room during peak times. An analysis of these bookings indicates that 150 deposits were received (all credited to Unearned Revenue) and only 40 of the deposits have not yet been earned by August 31, 2014. 6. The mortgage interest rate is 6.5% per year. Interest has been paid to August 1, 2014. 7. Salaries accrued to the end of August were $1,450. 8. The August utility bill of $3,420 is unrecorded and unpaid. 9. On August 31, Highland Cove has earned $1,350 of rent revenue from customers who are currently renting rooms but will not pay the amount owing until they check out in September. This amount is in addition to any deposits earned in item (5) above. HIGHLAND COVE RESORT Trial Balance August 31, 2014 Credit Debit $ 17,520 Cash Prepaid insurance Supplies Land 4,240 995 35,000 Buildings Accumulated depreciation-buildings Furniture 150,000 $ 47,750 33,000 Accumulated depreciation-furniture Accounts payable Unearned revenue 12,925 8,500 15,000 96,000 Mortgage payable K. MacPhail, capital K. MacPhail, drawings 85,000 42,735 Rent revenue 246,150 Depreciation expense Insurance expense Interest expense Repairs expense Salaries expense Supplies expense Utilities expense 5,775 6,890 5,720 14,400 153,000 4,450 37,600 $511,325 $511,325 Additional information: 1. The company pays $6,360 for its annual insurance policy on March 31 of each year. 2. A count shows $560 of supplies on hand on August 31, 2014. 3. The buildings have an estimated useful life of 50 years. 4. The furniture has an estimated useful life of 10 years. 5. Customers must pay a $100 deposit if they want to book a room during peak times. An analysis of these bookings indicates that 150 deposits were received (all credited to Unearned Revenue) and only 40 of the deposits have not yet been earned by August 31, 2014. 6. The mortgage interest rate is 6.5% per year. Interest has been paid to August 1, 2014. 7. Salaries accrued to the end of August were $1,450. 8. The August utility bill of $3,420 is unrecorded and unpaid. 9. On August 31, Highland Cove has earned $1,350 of rent revenue from customers who are currently renting rooms but will not pay the amount owing until they check out in September. This amount is in addition to any deposits earned in item (5) above. HIGHLAND COVE RESORT Trial Balance August 31, 2014 Credit Debit $ 17,520 Cash Prepaid insurance Supplies Land 4,240 995 35,000 Buildings Accumulated depreciation-buildings Furniture 150,000 $ 47,750 33,000 Accumulated depreciation-furniture Accounts payable Unearned revenue 12,925 8,500 15,000 96,000 Mortgage payable K. MacPhail, capital K. MacPhail, drawings 85,000 42,735 Rent revenue 246,150 Depreciation expense Insurance expense Interest expense Repairs expense Salaries expense Supplies expense Utilities expense 5,775 6,890 5,720 14,400 153,000 4,450 37,600 $511,325 $511,325

Answer rating: 100% (QA)

1 Aug 31 Insurance Expense 6360 112 530 Prepaid Insura... View the full answer