Ch 3: Computational Assignment

Sheffield Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. Credit SHEFFIELD RESORT TRIAL BALANCE AUGUST 31, 2020 Debit Cash $24700 Prepaid Insurance 9600 Supplies 7700 Land 24000 Buildings 124000 Equipment 20000 Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Retained Earnings Dividends 5000 Rent Revenue Salaries and Wages Expense 44800 Utilities Expenses 9200 Maintenance and Repairs Expense 3600 $272600 $9600 9700 64000 100100 9000 80200 $272600 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 $467 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 $3476 was earned prior to August 31. 5. Salaries of $346 were unpaid at August 31. 6. Rentals of $802 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year. 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 Ofor the amounts.) Debit Credit No. Date Account Titles and Explanation 1. Aug. 31 Insurance Expense Prepaid Insurance 2. Aug. 31 Supplies Expense Supplies 3. (a) Aug. 31 Depreciation Expense Accumulated Depreciation-Building 3. (b) Aug. 31 Depreciation Expense Accumulated Depreciation Equipment 4. Aug. 31 Unearned Rent Revenue Rent Revenue 5. Aug. 31 Salaries and Wages Expense Salaries and Wages Payable 6. Aug. 31 Accounts Receivable Rent Revenue 7. Aug. 31 Interest Expense Interest Payable Prepare an adjusted trial balance on August 31. SHEFFIELD RESORT Adjusted Trial Balance Debit Credit