5 Mountains E3-10 (Adjusting Entries) Hotel p pened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. Mountains Hotel TRIAL BALANCE AUGUST 31, 2014 Credit Debit $ 19,600 4,500 2,600 20,000 120,000 16,000 $ Cash Prepaid Insurance Supplies Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Retained Earnings Dividends Rent Revenue Salaries and Wages Expense Utilities Expenses Maintenance and Repairs Expense 4,500 4,600 60,000 91,000 9,000 5,000 76,200 44,800 9,200 3,600 45,300 $245,300 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2014. 2. An inventory count on August 31 shows $450 of supplies on hand. 3. Annual depreciation rates are buildings (4%) and equipment (10%). Salvage value is estimated to be 10% of cost. 4. Uneamed Rent Revenue of $3,800 was eamed prior to August 31. 5. Salaries of $375 were unpaid at August 31. 6. Rentals of $800 were due from tenants at August 31. 7. The mortgage interest rate is 8% per year. Your task is to prepare the appropriate journal entries and bring a worksheet to t class. ABC International Adiustine Entries and Financial Statements A rmation was founded in lanuary 2010. Presented below are adjusted and unadjusted trial balances as of December 31, 2014 DECEMBER 31, 2014 Unadusted S 11000 20 000 Accounts Receivable $ 11,000 23.500 3,000 2.500 00.000 3.350 00 000 $ 3.000 $ 28.000 5.000 Prepaid insurance Equipment Accumulated Depreciation Equipment Accounts Payable Interest Payable Notes Payable Uneared Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense 5.000 7,000 10.000 3.500 5.500 1200 10 000 3.500 63 500 L 10.000 11.300 350 Depreciation Expense Supplies Expense Rent Expense 4000 $197.100 $127 050 Instructions (a) Journalize the annual adjusting entries that were made. (Omit explanations.) (b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2014, and an unclassified balance sheet at December 31 (c) Answer the following questions (1) If the note has been outstanding 3 months, what is the annual interest rate on that note? (2) If the company paid $12.00 in salaries and wages in 2014 what was the balance in Salaries and Wages Payable on December 31, 2013? H/w for Monday October 14: 1. Finish the worksheet for Mountains Hotel 2. Prepare the worksheet for ABC International (Trial Balance, Adjustments (journal entries), and Adjusted Trial Balance only)