Culver Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows.
CULVER RESORT
TRIAL BALANCE
AUGUST 31, 2017
Debit
Credit
Cash $21,100 Prepaid Insurance 6,000 Supplies 4,100 Land 30,000 Buildings 130,000 Equipment 26,000 Accounts Payable $6,000 Unearned Rent Revenue 6,100 Mortgage Payable 70,000 Common Stock 102,500 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 86,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 Totals $279,800
$279,800
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2017.
2. An inventory count on August 31 shows $465 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 $3,618 was earned prior to August 31.
5. Salaries of $383 were unpaid at August 31.
6. Rentals of $812 were due from tenants at August 31. (Use Accounts Receivable account.)
7. The mortgage interest rate is 8% per year.