4-7 & 4-8
Prepare the adjusting entries for the month of June. Use J3 as the page number for your journal.
Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances, nd place a check mark in the posting reference column.
Prepare an adjusting trial balance at June 30th, 2008.
(b) The accounts before adjustment vl 7 Spring River Resort Inc. opened for business on June 1 with eight all-con units ts trial balance before adjustment on August 31 is as follows. SPRING RIVER RESORT INC. Trial Balance August 31, 2008 Account Debit Credit Number 101 126 130 Cash Supplies Prepaid Insurance $19,600 3,300 6,000 Exer 140 143 149 201 208 275 311 320 332 429 622 726 732 Land Cottages Furniture Accounts Payable Unearned Rent Mortgage Payable Common Stock Retained Earnings Dividends Rent Revenue Repair Expense Salaries Expense Utilities Expense 25,000 125,000 26,000 $ 6,500 7,400 80,000 100,000 5,000 80,000 3,600 51,000 9,400 $273,900 $273,900 In addition to those accounts listed on the trial balance, the chart of accounts for Spring River Resort also contains the following accounts and account numbers: No. 112 Accounts Receiv- able, No 144 Accumulated Depreciation-Cottages, No. 150 Accumulated Depreciation- Furniture, No. 212 Salaries Payable, No. 230 Interest Payable, No.620 Depreciation Expense- Cottages, No. 621 Depreciation Expense- Furniture, No. 631 Supplies 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 of August 31 shows $900 of supplies on hand. 3. Annual depreciation is $3,600 on cottages and $2,400 on furniture 4. Unearned rent of $4.100 was earned prior to August 31. S. Salaries of $400 were unpaid at August 31. 6. Rentals of $800 were due from tenants at August 31. (Use Accounts Receivable.) 7The mortgage interest rate is 9 percent per year. (The mortgage was taken out on August 1.) ournalize the adjusting entries on August 31 for the three-month period J August 31. 4-8 lan Socars onened her decorating company on January 1, 2008. During the first month of Prepare aud Instructions per year. (The mortgage was taken out on ts Receivable.) Instructions e the adjusting entries on August 31 for the three-month period June 1- August 31 4-8 J Ian Spears opened her decorating company on January 1,2008. During the first month of Prepare the following transactions occurred: ed services for country club clients. On January 31, $2.300 of such services was earned but not yet billed to the clubs. (SO 5, 6, nses incurred but not paid prior to January 31 totaled $650. 2. Utility expe 3. Purchased d decorating supplies on January 1 for $50,000, paying $10,000 in cash and signing a $40,000, three-year note payable. Interest is $300 per month. Purchased a one-year fire insurance policy on January 1 for $6,000. s. Purchased a computer at $2,100. On January 31, determined that $200 of the computer had been depreciated. Instructions Prepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation- Furniture, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Ex- pense, and Utilities Payable 4-9 Michael Davidson started his own hospitality consulting firm, Star Company, on June to lea 1, 2008. Star Company performs feasibility studies to determine if restaurants should be adjus opened at certain locations. The trial balance at June 30 is as follows Prep (so
