Assigmnent
Death Valley Resort opened for business on August 1, 2014. Its trial balance before adjustment on August 31 is presented below.
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DEATH VALLEY RESORT
Trial Balance
August 31, 2014
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Debit
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Credit
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Cash
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$ 24,600
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Supplies
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4,300
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Prepaid Insurance
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5,400
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Land
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40,000
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Buildings
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132,000
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Equipment
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36,000
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Accounts Payable
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$ 6,500
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Unearned Rent Revenue
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6,800
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Mortgage Payable
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120,000
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Common Stock
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100,000
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Dividends
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5,000
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Rent Revenue
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80,000
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Salaries and Wages Expense
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53,000
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Utilities Expense
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9,400
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Maintenance and Repairs Expense
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3,600
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$313,300
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$313,300
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Adjusting entries information:
1. Insurance expires for $500 a month
2. A count of supplies on August 31 shows $900 of supplies left on hand on August 31.
3. Depreciation expense for the month is $550 on Buildings and $300 on Equipment.
4. Unearned rent of $2,000 was earned
5. Salaries of $600 were unpaid at August 31
6. Rental revenue of $1,600 were due from tenants at August 31, but not yet recorded
Instructions
(a) Journalize the adjusting entries for the month of August 31
(b) Prepare an adjusted trial balance on August 31.(add new accounts to the Trial Balance as necessary)
(c) Prepare an Income Statement, Retained Earnings Statement a Classified Balance Sheet as of August 31.