Reference no: EM132364309

Question :

Burke, Pinder & Thompson opened the Wildcat's Resort & Spa. The Wildcat's Resort & Spa consists of twelve suites located ten miles from Bethune Cookman University. The unadjusted trial balance on December 1 is as follows:

WILDCAT'S RESORT & SPA Unadjusted Trial Balance December 31, 2018
	Debit	Credit
Cash	$174,400
Accounts Receivable	26,800
Prepaid Insurance	8,400
Supplies	4,200
Land	152,000
Hotel Suites	461,400
Hotel Suite Accum. Depreciation.		42,600
Furniture	76,000
Accum. Depreciation. Furniture		12,800
Account Payable		34,500
Unearned Rent Revenue		9,200
Mortgage Payable		296,000
Salaries Payable
Interest Payable
Common Stock		150,000
Retained Earnings		186,000
Dividends       18,000
Rent Revenue		284,600
Other Revenues		52,800
Salaries Expense         86,400
Utilities Expense         48,600
Repair Expense           12,300
Insurance Expense
Supplies Expense
Depreciation Expense
Miscellaneous Expense
Interest Expense	Total    $1,068,500      $1.068,500
Other data:

a) The balance in the Prepaid Insurance is a three-year premium.

b) A count of Supplies on December 31, shows $1,800 of supplies on hand.

c) Annual depreciation is $21,600 on Hotel Suite and $4,560 on Furniture.

d) Unearned rent of $4,300 earned prior to December 31, was not recorded

e) Salaries of $5,600 were unpaid at December 31.

f) Interest on the mortgage is $32,600 annually.

g) Rentals of $2,800 were due from tenants at December 31.

Instructions

(A) Prepare adjusting entries for the year ended December 31.

(B) Prepare an adjusted trail balance on December 31.

(C) Prepare an Income Statement a Statement of Retained Earnings and the Balance Sheet.

Part II

Prepare the following adjusting and correcting entries:

A) Interest on notes receivable of $1,500 is accrued

B) The purchase of equipment on account for $3,800 was recorded as a debit to Supplies expense for $3,800 and a credit to Accounts payable for $3,800

C) Bad debt expense for the year is $2,800

D) Dividend of $562 was debited to Wages Expense for $562 and credited to Cash for $562.