3. Depreciation Expense Accumulated Depreciation - Buildings (To record depreciation on buildings) Depreciation Expense Accumulated Depreciation - Equipment (To record depreciation on equipment) 4. Unearned Revenue Rent Revenue (Adjusting entry for rent revenue received for September) (Adjusting entry for unearned rent revenue earned during August) 5. 6. 7. Prepare an adjusted trial balance as at August 31. Monty Corp. Adjusted Trial Balance Debit Credit $ $ Monty Corp. Trial Balance August 31, 2020 Credit Debit $6,900 3,000 1,950 19,500 148,000 $21,312 16,000 Cash Prepaid insurance Supplies Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Accounts payable Unearned rent revenue Notes payable Common shares Retained earnings Dividends 4,320 4,400 4,700 77,000 80,900 4,500 5,050 65,500 Rent revenue Salaries and wages expense Insurance expense Interest expense Utilities expense Repairs and maintenance expense 36,642 10,500 3,850 7,650 3,590 $262,632 $262,632 * Additional information: 1. 2. 3. The balance in Prepaid Insurance includes the cost of four months premiums for an insurance policy that will expire on September 30, 2020. An inventory count on August 31 shows $690 of supplies on hand. Buildings and equipment are depreciated straight-line. From the date of purchase, the buildings have an estimated useful life of 25 years, and the equipment has an estimated useful life of 10 years. For both asset categories, residual value is estimated to be 10% of cost. (i) Rent revenue includes amounts received for September rentals in the amount of $9,000. (ii) Of the unadjusted Unearned Rent Revenue of $4,700, one half was earned prior to August 31. Salaries of $325 were unpaid at August 31. Rental fees of $815 were due from tenants at August 31. Use Accounts Receivable. The note payable interest rate is 10% per year, and the note has been outstanding since December 1, 2019. No principal repayments are due. Interest is paid twice per year (on June 1 and December 1). 4. 5. 6. 7. Journalize the adjusting entries on August 31 for the three-month period June 1 to August 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. Insurance Expense Prepaid Insurance 2. Supplies Supplies Expense 3. Depreciation Expense