An X hotel opened on June 1st with 8 AC-equipped units. The trial balance before August 31st is given as below:

Note: The prepaid insurance amount of 6k is cover for both year 1 and 2

Based on the given data, please prepare:

1. An appropriate entries which mt include 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

1. Insurance contract is for 2 years. 2. A count on August 31 shows 300 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 .)