A XYZ motel opened on June 1st with 8 AC-equipped room. Given that the trial balance before August 31st is as below:

Based on the data show above, please prepare:

1. An appropriate entries, which jncluding both adjusting and closing entries

2. An income statement for the 3 months ending on August 31st

3. A statement of financial position as of August 31st

prepaid insurance of $6000 is the insurance of year 1 + year 2

1. Insurance contract is for 2 years. 2. A count on August 31 shows X00 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 12% per year. (The mortgage was taken out on August 1.)