Prepare an adjusted trial balance on august 31

Assignment Help Financial Accounting

Reference no: EM131201147

Maquoketa Valley Resort opened for business on June 1 with eight air-conditioned units.

Its trial balance before adjustment on August 31 is presented here..

MAQUOKETA VALLEY RESORT Trial Balance August 31, 2012
	Debit	Credit
Cash	$ 24,600
Prepaid Insurance	5,400
Supplies	4,300
Land	40,000
Buildings	132,000
Equipment	36,000
Accounts Payable		$ 6,500
Unearned Rent Revenue		6,800
Mortgage Payable		120,000
Common Stock		100,000
Dividends	5000
Rent Revenue		80000
Salaries and Wages Expense	53,000
Utilities Expense	9,400
Maintenance and Repairs Expense	3,600
	$313,300	$313,300

Other data:

1. Insurance expires at the rate of $450 per month.
2. A count of supplies on August 31 shows $700 of supplies on hand.
3. Annual depreciation is $6,600 on buildings and $4,000 on equipment.
4. Unearned rent of $5,000 was earned prior to August 31.
5. Salaries of $600 were unpaid at August 31.
6. Rentals of $1,600 were due from tenants at August 31. (Use Accounts Receivable.)
7. The mortgage interest rate is 9% per year. (The mortgage was taken out August 1.)

Instructions
(a) Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31.

(b) Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting entries.

(d) Prepare an income statement and a retained earnings statement for the 3 months ended August 31 and a classified balance sheet as of August 31.

(e) Identify which accounts should be closed on August 31.

Reference no: EM131201147

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