Reference no: EM131802231

Exercise- Swifty Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows.

SWIFTY RESORT TRIAL BALANCE AUGUST 31, 2017
	Debit	Credit
Cash	$24,400
Prepaid Insurance	9,300
Supplies	7,400
Land	22,000
Buildings	122,000
Equipment	18,000
Accounts Payable		$9,300
Unearned Rent Revenue		9,400
Mortgage Payable		62,000
Common Stock		97,800
Retained Earnings		9,000
Dividends	5,000
Rent Revenue		78,200
Salaries and Wages Expense	44,800
Utilities Expenses	9,200
Maintenance and Repairs Expense	3,600
Totals	$265,700	$265,700

Other data:

1. The balance in prepaid insurance is a one-year premium paid on June 1, 2017.

2. An inventory count on August 31 shows $447 of supplies on hand.

3. Annual depreciation rates are

(a) buildings (4%)

(b) equipment (10%).

Salvage value is estimated to be 10% of cost.

4. Unearned Rent Revenue of $3,829 was earned prior to August 31.

5. Salaries of $382 were unpaid at August 31.

6. Rentals of $789 were due from tenants at August 31. (Use Accounts Receivable account.)

7. The mortgage interest rate is 8% per year.

Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31.