Exercise 3-10 (Part Level Submission)

Uhura Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows (in thousands).

UHURA RESORT
TRIAL BALANCE
AUGUST 31, 2015
	Debit	Credit
Cash	19,600
Prepaid Insurance	4,500
Supplies	2,600
Land	20,000
Buildings	120,000
Equipment	16,000
Accounts Payable		4,500
Unearned Rent Revenue		4,600
Mortgage Payable		50,000
Share Capital-Ordinary		100,000
Retained Earnings		0
Dividends	5,000
Rent Revenue		86,200
Salaries and Wages Expense	44,800
Utilities Expense	9,200
Maintenance and Repair Expense	3,600
Totals	245,300	245,300

Other data:

1.	The balance in prepaid insurance is a one-year premium paid on June 1, 2015.
2.	An inventory count on August 31 shows 650 of supplies on hand.
3.	Annual depreciation rates are buildings (4%) and equipment (10%). Residual value is estimated to be 10% of cost.
4.	Unearned rent revenue of 3,800 was earned prior to August 31.
5.	Salaries and wages of 375 were unpaid at August 31.
6.	Rentals of 800 were due from tenants at August 31.
7.	The mortgage note is dated 1/1/2015. The mortgage interest rate is 8% per year.

(a) Journalize the adjusting entries on August 31 for the 3-month period June 1August 31.