Question

LE post, al bal. nients. 4-7 Spring River Resort Inc. opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows. SPRING RIVER RESORT INC. Trial Balance August 31, 2008 Account Number Credit 101 126 130 Cash Supplies Prepaid Insurance Debit $19,600 3,300 6,000

just need to make the adjusting journal entries.

Answer 1

The adjusting entries are shown below
Date	General Journal	Debit	Credit
31-Aug	Insurance expense (400*3)	$1,200
	Prepaid insurance		$1,200
	(To record insurance expired)
31-Aug	Supplies expense (3300-900)	$2,400
	Supplies		$2,400
	(To record supplies expense)
31-Aug	Depreciation expense (3600+2400)	$6,000
	Accumulated depreciation - Cottage		$3,600
	Accumulated depreciation - Furniture		$2,400
	(To record depreciation expense)
31-Aug	Unearned rent	$4,100
	Rent revenue		$4,100
	(To record rent revenue earned)
31-Aug	Salaries expense	$400
	Salaries payable		$400
	(To record unpaid salary expense)
31-Aug	Accounts receivable	$800
	Rent revenue		$800
	(To record rentals due from tenants)
31-Aug	Interest expense (80000*9%*1/12)	$600
	Interest payable		$600
	(To record accrued interest on mortgage payable)