The following is the unadjusted trial balance for Panorama Resort Inc. at its year end, December 31,
Question:
Debit | Credit | ||
Cash | $ 42,580 | ||
Accounts receivable | 17,935 | ||
Supplies | 12,980 | ||
Prepaid insurance | 10,200 | ||
Land | 85,000 | ||
Buildings | 310,000 | ||
Accumulated depreciation—buildings | $ 62,000 | ||
Accounts payable | 14,600 | ||
Unearned revenue | 44,520 | ||
Note payable, due 2021 | 148,000 | ||
Common shares | 80,000 | ||
Retained earnings | 62,000 | ||
Rent revenue Salaries expense | 348,200 | 525,000 | |
Utilities expense | 39,395 | ||
Repairs and maintenance expense | 21,560 | ||
Interest expense | 7,850 | ||
Income tax expense | 21,000 | ||
$874,120 | $874,120 |
Additional information is provided below:
- A count of supplies on December 31st shows $4,150 of supplies on hand.
- The building has an estimated 20 year life with no residual value and straight-line depreciation is used.
- Salaries of $1,640 were unpaid on December 31st.
- Rental revenue for 5 nights at $150 per night during the last week of December has not been paid (received) or recorded.
- A two year insurance policy was purchased September 1, 2018.
- Income tax payable is estimated to be $1,920.
- Of the unearned revenue, it was determined that $28,500 remains unearned.
- Interest on the note payable is $785 per month and was last paid on October 31, 201
- The December utility bill of $3,380 has not year been recorded or paid.
REQUIRED:
Prepare all necessary adjusting journal entries for their year-end, December 31, 2018. Omit explanations but show calculations. Round all calculations to the nearest dollar
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow