E5 E3-7 (Adjusting Entries Greco Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. GRECO RESORT TRIAL BALANCE AUGUST 31, 2007 Cred Debi 19,600 Cash Prepaid Insurance 4,500 2.600 Supplies 20,000 Land 120,000 Cottages 16,000 Furniture 4,500 Accounts Payable 4,600 Unearned Rent Revenue 60,000 Mortgage Payable 91,000 Common Stock 9,000 Retained Earnings 5,000 Dividends 76,200 Rent Revenue 44.800 Salaries Expense 9,200 Utilities Expense 3,600 Repair Expense $245,300 $245,300 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2007. 2. An inventory count on August 31 shows $450 of supplies on hand. 3. Annual depreciation rates are cottages (4%) and furniture (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $3,800 was earned prior to August 31. 5. Salaries of $375 were unpaid at August 31. 6. Rentals of $800 were due from tenants at August 31. 7. The mortgage interest rate is 8% per year