Death Valley Resort opened for business on August 1, 2014. Its trial balance before adjustment on August 31 is presented below.

DEATH VALLEY RESORT Trial Balance August 31, 2014
	Debit	Credit
Cash	$ 24,600
Supplies	4,300
Prepaid Insurance	5,400
Land	40,000
Buildings	132,000
Equipment	36,000
Accounts Payable		$ 6,500
Unearned Rent Revenue		6,800
Mortgage Payable		120,000
Common Stock		100,000
Dividends	5,000
Rent Revenue		80,000
Salaries and Wages Expense	53,000
Utilities Expense	9,400
Maintenance and Repairs Expense	3,600
	$313,300	$313,300

Adjusting entries information:

• Insurance expires for $500 a month
• A count of supplies on August 31 shows $900 of supplies left on hand on August 31.
• Depreciation expense for the month is $550 on Buildings and $300 on Equipment.
• Unearned rent of $2,000 was earned
• Salaries of $600 were unpaid at August 31
• Rental revenue of $1,600 were due from tenants at August 31, but not yet recorded

Instructions

(a)	Journalize the adjusting entries for the month of August 31 (6 points)

(b)

Prepare an adjusted trial balance on August 31. (add new accounts to the Trial Balance as necessary) (6 points)

(b) Tot. Adjusted. trial balance

$316,350

(d)

Prepare an Income Statement (6 points), Retained Earnings Statement (4 points) a Classified Balance Sheet as of August 31.(8 points)

(d) Net income

$ 12,250

Extra Credit Problem 30 points Death Valley Resort opened for business on August 1, 2014. Its trial balance before adjustment on August 31 is presented below. DEATH VALLEY RESORT Trial Balance August 31, 2014 Debit Credit Cash $ 24,600 Supplies 4,300 Prepaid Insurance 5,400 Land 40,000 Buildings 132,000 Equipment 36,000 Accounts Payable $ 6,500 Unearned Rent Revenue 6,800 Mortgage Payable 120,000 Common Stock 100,000 Dividends 5,000 Rent Revenue 80,000 Salaries and Wages Expense 53,000 Utilities Expense 9,400 Maintenance and Repairs Expense 3,600 $313,300 $313,300 Adjusting entries information: 1. 2. 3. 4. 5. 6. Insurance expires for $500 a month A count of supplies on August 31 shows $900 of supplies left on hand on August 31. Depreciation expense for the month is $550 on Buildings and $300 on Equipment. Unearned rent of $2,000 was earned Salaries of $600 were unpaid at August 31 Rental revenue of $1,600 were due from tenants at August 31, but not yet recorded Instructions (a) Journalize the adjusting entries for the month of August 31 (6 points) (b) Prepare an adjusted trial balance on August 31. (add new accounts to the Trial Balance as necessary) (6 points) (b) Tot. Adjusted. trial balance $316,350 (d) Prepare an Income Statement (6 points), Retained Earnings Statement (4 points) a Classified Balance Sheet as of August 31.(8 points) (d) Net income $ 12,250