Reference no: EM13554683
Uhura Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows.
Other data:
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2012.
2. An inventory count on August 31 shows $650 of supplies on hand.
3. Annual depreciation rates are buildings (4%) and equipment (10%). Salvage value is estimated to be 10% of cost.
4. Unearned Rent Revenue of $3,800 was earned prior to August 31.
5. Salaries of $375 were unpaid at August 31.
6. Rentals of $800 were due from tenants at August 31.
7. The mortgage interest rate is 8% per year.
Instructions
(a) Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31. (Omit explanations.)
(b) Prepare an adjusted trial balance on August31.
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