In addition to those accounts listed on the trial balance, the chart of accounts for Neosho River Resort, Inc. also contains the following account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation-Cottages, No.150 Accumulated Depreciation-Furniture, No. 212 Salaries Payable, No. 230 Interest Payable, No. 320 Retained Earnings, No. 620 Depreciation Expense-Cottages, No. 621 Depreciation Expense-Furniture, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.
Other data:
1. Insurance expires at the rate of $400 per month.
2. A count on August 31 shows $600 of supplies on hand.
3. Annual depreciation is $6,000 on cottages and $2,400 on furniture
4. Unearned rent revenue of $4,100 was earned prior to August 31.
5. Salaries of $400 were unpaid at August 31.
6.Rentals of $1,000 were due from tenants at August 31. (Use Accounts Receivable.)
7. The mortgage interest rate is 9 percent per year. (The mortgage was taken out on 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 the three-column form of account. Enter the trial balance amounts and post the adjusting entries.
(c.) Prepare an adjusted trial balance on August 31.
(d.) Prepare an income statement and a retained earnings statement for the 3 months ending August 31 and a balance sheet as of August 31.