Cambodia Resort is opened for business on June 1 with eight air-conditioned units. Here's the trial balance on August 31 (in thousands).

Additional information: 1. The balance in the prepaid insurance is the 1 year premium paid on June 1, 2021. 2. The inventory count on August 31 shows $975 of inventory on hand. 3. The annual depreciation rates are buildings (4%) and equipment (10%). Estimated residual value 10% of the cost. 4. Unearned rental income of $5,700 should be recognized as income before August. 5. Salary and wages of $562.5 unpaid as of August 31. 6. A lease of $1,200 is due from the lessee on August 31. 7. Mortgage note dated 1/1/2021. The mortgage interest rate is 8% per annum.

Instructions a. Prepare the adjusting entries on August 31 for a 3-month period (June 1August 31) b. Prepare an adjusted trial balance on August 31.

Credit Wagy Hotel Trial Balance August 31, 2021 Debit Cash $ 29,400.00 Prepaid Insurance $ 6,750.00 Supplies $ 3,900.00 Land $ 30,000.00 Buildings $ 180,000.00 Equipment $ 24,000.00 Accounts Payable Unearned Rent Revenue Mortgage Payable Share Capital - Ordinary Retained Earnings Dividends $ 7,500.00 Rent Revenue Salaries and Wages Expense $ 67,200.00 Utilities Expense $ 13,800.00 $ 6,750.00 $ 6,900.00 $ 75,000.00 $ 150,000.00 $ 129,300.00 Maintenance and Repairs Expense $ 5,400.00 $367,950.00 $367,950.00