Enchanted Forest, a large campground in South Carolina, adjusts its accounts monthly. Most guests of the campground pay at the time they check out, and the amounts collected are credited to Camper revenue. The following information is avallable as a source for preparing the adjusting entries at December 31 : 1. Enchanted Forest invests some of its excess cash in certificates of deposit (CDs) with its iocal bank. Accrued interest revenue on its CDs at December 31 is $400. None of the interest has yet been recelved. (Debit interest recelvable). 2. A six-month bank loan in the amount of $12,000 had been obtained on September 1 . Interest is to be computed at an annual rate or 8.5 percent and is payable when the loan becomes due: 3. Depreclation on bulidings owned by the campground is based on a 25 -year life. The original cost of the bullings was $600,000 The Accumulated Depreclation: Bulidings account has a credit balance of $310,000 at December 31 , prior to the adjusting entry process. The straight-line method of depreclation is used. 4. Management signed an agreement to let Boy Scout Troop 538 of Lewisburg. Pennsylvanla, use the campground in June of next year. The agreement specities that the Boy Scouts will pay a dally rate of $15 per campsite, with a clause providing a minimum total charge of $1,475. 5. Salaries earned by campground employees that have not yet been paid amount to $1,250. 6. As of December 31, Enchanted Forest has earned $2.400 of revenue from current campers who will not be billed until they check out. (Debit Camper revenue recelvable) 7. Several lakefront campsites are currently being leased on a long-term basis by a group of senior citizens. Six months' rent of $5,400 was collected in advance and credited to Unearned Camper revenue on October 1 of the current year. 8. A bus to carry campers to and from town and the alrport had been rented the first week of December at a dally rate of $40. At December 31 , no rental payment has been made, aithough the campground has had use of the bus for 25 days. 9. Unrecorded income taxes expense accrued in December amounts to $8,400. This amount will not be paid until January 15 Required: Q. For each of the above numbered paragraphs, prepare the necessary adjusting entry b. Using these descriptions, Identify the type of each adjusting entry. c. Indicate the effects that each of the adjustments in part a will have on the following six total amounts in the campground's financial statements for the month of December. Select the letters I for increase, D for decrease, and NE for no effect. Adjusting entry 1 is provided as an example d. What is the amount of interest expense recognized for the entire current year on the $12,000 bank loan obtained September t? e. Compute the book value of the campground's buildings to be reported in the current year's December 31 balance sheet. (Refer to puragraph 3. Complete this question by entering your answers in the tabs below. Compute the book value of the campground's buildings to be reported in the current year's December 31 balance sheet. (Refer to paraoraph 3.) \begin{tabular}{|c|c|c|c|c|c|} \hline No & Date & General Jour & & Debit & Credit \\ \hline \multirow[t]{2}{*}{1} & Docember 31 & Ifferest receivable & 0 & 4000 & \\ \hline & & Interest revenue & 0 & & 4000 \\ \hline & & & & & \\ \hline \multirow[t]{3}{*}{2} & December 31 & Interest expense & 0 & 050 & 4 \\ \hline & & Interest payabio & 0 & & 850 \\ \hline & & & & & \\ \hline \multirow[t]{2}{*}{3} & December 31 & Depreciation expense - buldings & 0 & 2,0000 & \\ \hline & & Accumulated depreciation - buldings & 0 & & 2,0000 \\ \hline & & & & & \\ \hline \multirow[t]{2}{*}{4} & December 31 & No joumal entry required & 0 & & \\ \hline & & & & & \\ \hline \multirow[t]{3}{*}{5} & Docenber 31 & Satarips exponse & 0 & 1,2500 & \\ \hline & & Satanes payable & 0 & & 1,2500 \\ \hline & & & & & \\ \hline \multirow[t]{3}{*}{6} & December 31 & Camper revenue recolvable & 0 & 2.4000 & \\ \hline & & Campet tevenue & 0 & & 2,4000 \\ \hline & & & & & \\ \hline \multirow[t]{3}{*}{7} & December 31 & Unoarned camper revenue & 0 & 9000 & \\ \hline & & Camper revenue & 0 & & 9000 \\ \hline & & & & & \\ \hline \multirow[t]{3}{*}{ i } & December 31 & Bus rental eupente & 0 & 1,0000 & \\ \hline & & Accounts payabie & 0 & & 1,0000 \\ \hline & & & & & \\ \hline \multirow[t]{2}{*}{9} & Decumber 31 & Income taxes expense & 0 & 5.4000 & 17 \\ \hline & & Income tures bayatis & 0 & & 8,4000 \\ \hline \end{tabular} netwithin Ropulred 13 ? Using these descriptions, identify the djusting entry. a. For each of the above numbered paragraphs, prephre the necessary adjusting entry. b. Using these descriptions, Identify the type of each adjusting entry. c. Indicate the effects that each of the adjustments in part a will have on the following six total amounts in the campground's finand statements for the month of December. Select the letters I for increase, D for decrease, and NE for no effect. Adjusting entry 1 is provided as an example d. What is the amount of Interest expense recognized for the entire current year on the $12,000 bank loan obtained September 1 ? e. Compute the book vatue of the campground's bulidings to be reported in the current year's December 31 balance sheet. (Refer to paragraph 3) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is the amount of interest expense recoonized for the entire current year on the $12,000 bank loan obtained September 1 ? Compute the book value of the campground's buildings to be reported in the (Refer to paragraph 3.) Enchanted Forest, a large campground in South Carolina, adjusts its accounts monthly. Most guests of the campground pay at the time they check out, and the amounts collected are credited to Camper revenue. The following information is avallable as a source for preparing the dd]usting entries at December 31 1. Enchanted Forent invests some of its excess cash in certuficates of deposit (CDs) with its locar bank. Accrued interest revenue on is CDS at December 31 is $400. None of the interest has yet been recelved. (Debit interest receivable) 2. A six-month bank loan in the amount of $12,000 had been obtained on September 1 . Interest is to be computed at an annual rate of 8.5 percent and is payable when the loan becomes due 3. Depreciation on bulidings owned by the campground is based on a 25 -year life The original cost of the buildings was $600,000 The Accumulated Depreciation. Bulldings account has a credit batance of $310,000 at December 31 , prior to the adjusting entry process. The straight-tine method of depreciation is used 4. Management signed an agreement to let Boy Scout Troop 538 of Lewisburg. Pennsylvania, use the campground in June of next year. The agreement specries that the Boy Scouts will pay a dally rate of $15 per campste, with a clause providing a minimum total chatge of $1,475 5. Salarles earned by campground employees that have not yet been paid amount to $1,250. 6. As of December 31, Enchanted Forest has earned $2,400 of revenue from current campers who will not be billed until they check out (Debit Camper revenue recelvable) 7. Severai lakefront campsites are curenty being leased on a long-term basis by a group of sentor citizens. Six months' rent of \$5,400 was coliected in advance and credited to Unearned Camper fevenue on October 1 of the current year 8. A bus to carry campers to and from town and the airport had been rented the first week of December at a dally rate of $40. At December 31, no rental payment has been made, athough the campground has had use of the bus for 25 ctays. 9. Unrecorded Income taxes expense accrued in December amounts to $8,400. Thes amount will not be paid until January 15 Required: o. For each of the above numbered paragrapha, prepare the necessary adjusting entry b. Using these descriptions, IGentity the type of each adjusting entry c. Indicate the effects that each of the adjustments in part a will have on the following six totar amounts in the campground's financial statements for the month of December Select the letters 1 for increase. D for decrease, and NE for no effect Adjusting entry 1 is provided as an example. d. What is the amount of Interest expense fecognized for the entire current year on the $12,000 bank loan obtained September 1 ? e. Compute the book value of the campground's bulidings to be reported in the current yeary December 31 balance sheet. (Refer to paragraph 3) Answer is complete but not entirely correct