Question

Exercise 3-10 Oriole Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. Credit ORIOLE RESORT TRIAL BALANCE AUGUST 31, 2020 Debit Cash $25,600 Prepaid Insurance 10,500 Supplies 8,600 Land 30,000 Buildings 130,000 Equipment 26,000 Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Retained Earnings Dividends 5,000 Rent Revenue Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 $293,300 $10,500 10,600 70,000 107,000 9,000 86,200 $ 293,300

Answer 1

Answer:

ORIOLE RESORT
TRIAL BALANCE
AUGUST 31,2020
	Debit	Credit
Cash	$25,600
Accounts receivable	$819
Prepaid Insurance	$7,875
Supplies	$438
Land	$30,000
Buildings	$130,000
Equipment	$26,000
Accumulated depreciation-buildings		$1,170
Accumulated depreciation-equipment		$585
Accounts payable		$10,500
Salaries and Wages payable		$357
Interest payable		$1,400
Unearned Rent revenue		$6,734
Mortgage payable		$70,000
Common stock		$107,000
Retaind earnings		$9,000
Dividends	$5,000
Rent revenue		$90,885
Salaries and Wages expense	$45,157
Utilities Expense	$9,200
Maintenance and Repairs Expense	$3,600
Insurance Expense	$2,625
Supplies expense	$8,162
Depreciation Expense	$1,755
Interest expense	$1,400
Total	$297,631	$297,631

Calculations:

	Debit	Credit
Cash	$25,600
Accounts receivable	$819
Prepaid Insurance	10500-2625
Supplies	8600-8162
Land	$30,000
Buildings	$130,000
Equipment	$26,000
Accumulated depreciation-buildings [(130,000-13,000) x 4% x 3/12]		$1,170
Accumulated depreciation-equipment [(26,000-2,600) x 10% x 3/12]		$585
Accounts payable		$10,500
Salaries and Wages payable		$357
Interest payable		$1,400
Unearned Rent revenue		10600-3866
Mortgage payable		$70,000
Common stock		$107,000
Retained earnings		$9,000
Dividends	$5,000
Rent revenue		86200+3866+819
Salaries and Wages expense	44800+357
Utilities Expense	$9,200
Maintenance and Repairs Expense	$3,600
Insurance Expense [10500 x 3/12]	$2,625
Supplies expense [8600-438]	$8,162
Depreciation Expense [1170+585]	$1,755
Interest expense [70,000 x 8% x 3/12]	$1,400