Lazy River Resort opened for business on June 1 with eight air-conditioned units.

post, and prepare adjusted Its trial balance before adjustment on August 31 is as follows.

trial balance, and financial statements. Lazy River Resort, Inc.

(LO 5, 6, 7) Trial Balance August 31, 2014 GL Account Number Debit Credit 101 Cash $ 19,600 126 Supplies 3,300 130 Prepaid Insurance 6,000 140 Land 25,000 143 Buildings “125,000 Sy Equipment 26,000 201 Accounts Payable $ 6,500 208 Unearned Rent Revenue 7,400 Die Mortgage Payable 80,000 311 Common Stock 100,000 532 Dividends 5,000 429 Rent Revenue 80,000 622 Maintenance and Repairs Expense 3,600 726 Salaries and Wages Expense 51,000 UP Utilities Expense 9,400

$273,900 $273,900 In addition to those accounts listed on the trial balance, the chart of accounts for Lazy River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation—Buildings, No. 158 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

1. Insurance expires at the rate of $400 per month.

2. A count on August 31 shows $900 of supplies on hand.

3. Annual depreciation is $4,500 on buildings and $2,400 on equipment.

4. Unearned rent revenue of $4,100 was recognized for services performed prior to August 31.

5. Salaries of $400 were unpaid at August 31.

6. Rentals of $3,700 were due from tenants at August 31. (Use Accounts Receivable.)

7. The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.)

(0) Adj. trial balance $280,325 #Structions j

(a) Journalize the adjusting entries on August 31 for the 3-month period June 1—August 31.

(d) Net income $17,475

(b) Prepare a ledger using the three-column form of account. Enter the trial balance Ending retained earnings amounts and post the adjusting entries. (Use J1 as the posting reference.)

$12,475

(c) Prepare an adjusted trial balance on August 31.

Total assets $203,275

(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.

Prepare adjusting entries and