Bonita Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows.

BONITA RESORT

TRIAL BALANCE

AUGUST 31, 2020

Debit Credit

Cash $22,300

Prepaid Insurance 7,200

Supplies 5,300

Land 28,000

Buildings 128,000

Equipment 24,000

Accounts Payable $7,200

Unearned Rent Revenue 7,300

Mortgage Payable 68,000

Common Stock 101,700

Retained Earnings 9,000

Dividends 5,000

Rent Revenue 84,200

Salaries and Wages Expense 44,800

Utilities Expenses 9,200

Maintenance and Repairs Expense 3,600

$277,400 $277,400

Other data:

1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020.

2. An inventory count on August 31 shows $444 of supplies on hand.

3. Annual depreciation rates are

(a) buildings (4%)

(b) equipment (10%).

Salvage value is estimated to be 10% of cost.

4. Unearned Rent Revenue of $3,945 was earned prior to August 31.

5. Salaries of $371 were unpaid at August 31.

6. Rentals of $867 were due from tenants at August 31. (Use Accounts Receivable account.)

7. The mortgage interest rate is 8% per year.

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(a)

Correct answer. Your answer is correct.

Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

No. Date Account Titles and Explanation Debit Credit

1. Aug. 31 Insurance Expense 1,800

Prepaid Insurance 1,800

2. Aug. 31 Supplies Expense 4,856

Supplies 4,856

3. (a) Aug. 31 Depreciation Expense 1,152

Accumulated Depreciation-Building 1,152

3. (b) Aug. 31 Depreciation Expense 540

Accumulated Depreciation-Equipment 540

4. Aug. 31 unearnedrent revenue 3,945

Rent Revenue 3,945

5. Aug. 31 Salaries and Wages Expense 371

Salaries and Wages Payable 371

6. Aug. 31 Accounts Receivable 867

Rent Revenue 867

7. Aug. 31 Interest Expense 1,360

Interest Payable 1,360

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Attempts: 2 of 3 used

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(b)

adjusted trial balance on August 31.

BONITA RESORT

Adjusted Trial Balance

Debit Credit

$ $

Totals

$

$