Question

answer part d please I posted parts a, b and c as seprate questions.

Radford River Resort opened for business on June 1 with 10 deluxe villas. Its trial balance before adjustment on August 31 is as follows. RADFORD RIVER RESORT Trial Balance August 31, 2020 Account Number Debit Credit 101 Cash $ 19,600 126 Supplies 3,300 130 Prepaid Insurance 6,000 140 Land 25,000 141 Buildings 125,000 149 Equipment 26,000 201 Accounts Payable $ 6,500 208 Unearned Rent Revenue 7,400 275 Mortgage Payable 80,000 311 Common Stock 100,000 332 Dividends 5,000 429 Rent Revenue 80,000 622 Maintenance & Repairs Expense 3,600 726 Salaries and Wages Expense 51,000 732 Utilities Expense 9.400 $273.900 $273.900 In addition to those accounts listed on the trial balance, the chart of accounts for Radford River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 142 Accumulated Depreciation Buildings, No. 150 Accumulated Depreciation --Equipment, No. 212 Salaries and Wages Payable, No 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data: 1. Insurance expires at the rate of $300 per month 2. A count on August 31 shows $800 of supplies on hand. 3. Annual depreciation is $6,000 on buildings and $2,400 on equipment. 4. Unearned rent revenue of $4,800 has been earned. 5. Salaries of $400 were unpaid at August 31. 6. Rentals of $4,000 were due from tenants at August 31. 7. The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.)

Answer 1

Please refer the following image for the solution:  

Radford River Resort Retained Earnings Statement For three month ended August 31 Retained earnings , June 1 $ Add: Net Income $ 18,300 Less : Dividend $ 5,000 Retained earnings , August 31 $ 13,300 Radford River Resort Income Statement For three month ended August 31 Revenue Rent Revenue $ 88,800 Expenses Depreciation Expense $ 2,100 Repair Expense $ 3,600 Supplies Expense $ 2,500 Interest Expense $ 600 Insurance Expense $ 900 Salaries Expense $ 51,400 Utilities Expense $ 9,400 Total Expense $ 70,500 Net Income $ 18,300 Radford River Resort Balance Sheet As on August 31, 2020 Assets Current Assets Cash $ 19,600 Accounts receivable $ 4,000 Supplies $ 800 Prepaid Insurance $ 5,100 Total current assets $ 29,500 Land $ 25,000 Buildings $ 125,000 Less: Accumulated Depreciation $ 1,500 $ 123,500 Ref Credit Workings Rent Revenue Date Account Title 31-Aug Unearned Revenue Rent Revenue (to record part of unearned revnue) Debit 208 $ 4,800 429 $ 4,800 Equipment $ 26,000 Less: Accumulated Depreciation $ 600 $ 25,400 Total Assets $ 203,400 Liabilities and Stockholders' Equity 112 $ 4,000 429 $ 4,000 31-Aug Accounts Receivable Rent Revenue |(To record revnue earned but not received) Balance Aug-31 Aug-31 $ 80,000 $ 4,800 $ 4,000 $88,800 Adjusting entry Adjusting entry Accounts Payable Mortgage Payable Unearned rent Interest Payable Salaries Payable Total Liabilities Stockholders' equity Common stock Retained earnings $ 6,500 $ 80,000 $ 2,600 $ 600 $ 400 $ 90,100 $ 100,000 $ 13,300 Ref Debit Credit 619 $ 1,500 Total Stockholders' equity $ 113,300 Depreciation expense Date Account Title Depreciation expense 31-Aug ($6,000*3/12) Accumulated depreciation - Building (to record depreciation of building for 3 months) 142 $1,500 Total Liabilities and Stockholders' equity $ 203,400 Workings Accounts receivable 619 $ 600 Aug-31 Adjusting entry $ 4,000 Depreciation expense 31-Aug ($2,400*3/12) Accumulated depreciation - Equipment (to record depreciation of equipment for 3 months) 142 $ 600 Supplies Balance Aug-31 $3,300 $ 2,500 $ 800 Adjusting entry Aug-31 Aug-31 Adjusting entry Adjusting entry $ 1,500 $ 600 $ 2,100 Prepaid Insurance Balance Aug-31 Adjusting entry $6,000 $ 900 $5,100 Ref Debit Credit Supplies expense Date Account Title Supplies expense 31-Aug ($3,300 - $800) Supplies (To record suppleis for 3 months) 722 $ 2,500 130 $ 2,500 Unearned Revenue Balance Aug-31 $ 7,400 $4,800 $2,600 Adjusting entry Aug-31 Adjusting entry $ 2,500 $ 2,500 Interest Payable Aug-31 Adjusting entry $ 600 Ref Debit Credit Interest Expense Date Account Title Interest expense 31-Aug ($80,000*9%*1/12) Interest Payable (To record interest accrued on mortgage) 600 718 $ 230 Salaries Payable Aug-31 $ 600 Adjusting entry S 400 Aug-31 Adjusting entry $ $ 600 600 Ref Credit Insurance expense Date Account Title 31-Aug Insurance expense ($300*3) Prepaid Insurance (To record part of prepaid Debit 722 S 900 130 $ 900 Aug-31 Adjusting entry $ $ 900 900 Ref Credit Salaries Expense Date Account Title 31-Aug Salaries expense Salary Payable (To record accrued salary) Debit 726 $ 400 212 $ 400 Balance Aug-31 Adjusting entry $ 51,000 $ 400 $ 51,400