Accounting Concepts Other data: 1. Insurance expires at the rate of $500 per month. 2. A count of supplies on August 31 shows $900 of supplies on hand. 3. Annual depreciation is $6,600 on buildings and $4,000 on equipment. 4. Unearned rent of $4,000 was earned prior to August 31 . 5. Salaries of $600 were unpaid at August 31. 6. Rentals of $1,600 were due from tenants at August 31. (Use Accounts Receivable.) 7. The mortgage interest rate is 6% per year. (The mortgage was taken out August 1.) Instructions (a) Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31. (b) Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (c) Prepare an adjusted trial balance on August 31. (d) Prepare an income statement and a retained earnings statement for the 3 months ended August 31 and a classified balance sheet as of August 31 . (e) Identify which accounts should be closed on August 31 . P4-3B Death Valley Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is presented here. Prepare adjusting entries, adjusted trial balance, and financial statements. (LO 4, 5, 6, 7), AP DEATH VALLEY RESORT Accounting Concepts Other data: 1. Insurance expires at the rate of $500 per month. 2. A count of supplies on August 31 shows $900 of supplies on hand. 3. Annual depreciation is $6,600 on buildings and $4,000 on equipment. 4. Unearned rent of $4,000 was earned prior to August 31 . 5. Salaries of $600 were unpaid at August 31. 6. Rentals of $1,600 were due from tenants at August 31. (Use Accounts Receivable.) 7. The mortgage interest rate is 6% per year. (The mortgage was taken out August 1.) Instructions (a) Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31. (b) Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (c) Prepare an adjusted trial balance on August 31. (d) Prepare an income statement and a retained earnings statement for the 3 months ended August 31 and a classified balance sheet as of August 31 . (e) Identify which accounts should be closed on August 31 . P4-3B Death Valley Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is presented here. Prepare adjusting entries, adjusted trial balance, and financial statements. (LO 4, 5, 6, 7), AP DEATH VALLEY RESORT