Question

101 429 622 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 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 Rent Revenue 80,000 Maintenance & Repairs Expense 3,600 726 Salaries and Wages Expense 51,000 732 Utilities Expense 9.400 $273.900 $273.900 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. Uneamed 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.) 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. (Use J1 as the posting reference.) (c) Adj. trial balance (c) Prepare an adjusted trial balance on August 31. $281,000 (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.

Answer 1

Note - As HOMEWORKLIB RULES guidlines we are alloewed to process 1 question at a time. When there are multiple question we can do 1st one.

1. Adjusting Entries -

2. Adjusted Trial Balance -

3. Income Statement -

4. Statement of Retained Earnings -

5. Balance Sheet -