For each of the above numbered paragraphs, prepare the necessary adjusting entry (Note: NO explanation of the transaction is required). If no adjusting entry is required, explain why and Compute the book value of the campgrounds buildings to be reported in the current years 31 December statement of financial position. Show your detailed workings.

Big Fun ("Big Fun") Company, a large campground in Hong Kong, adjusts its accounts monthly and closes its accounts annually on 31 December. 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 available as a source for preparing the adjusting entries at 31 December: 1) 2) 3) 5) 6) Big Fun invests some of its excess cash in fixed deposit with its local bank. Accrued interest revenue on its fixed deposit at 31 December is $425. None of the interest has yet been received. An eight-month bank loan in the amount of $12,000 had been obtained on 1 October. Interest is to be computed at an annual rate of 8 percent and is payable when the loan becomes due. Depreciation on buildings owned by the campground is based on a 20-yeaer life. The original cost of the buildings was $720,000. The Accumulated Depreciation: Buildings account has a credit balance of $160,000 at 31 December, prior to the adjusting entry process. The straight- line method of depreciation is used. Management signed an agreement to let Boy Scouts in Kowloon use the campground in June of next year. The agreement specifies that the Boy Scouts will pay a daily rate of $15 per campsite, with a clause providing a minimum total charge of $1,200. Salaries earned by campground employees that have not yet been paid amount to $1,515. As at 31 December, Big Fun has earned $2,700 of revenue from current campers who will not be billed until they check out. Several lakefront campsites are currently being leased on a long-term basis by a group of senior citizens. Five months' rent of $7,500 was collected in advance and credited to Unearned Camper Revenue on 1 November of the current year. A bus to carry campers to and from town and the airport had been rented the first week of December at a daily rate of $45. At 31 December, no rental payment has been made, although the campground has had use of the bus for 18 days. Unrecorded Income Taxes Expense accrued in December amounts to $6,600. This amount will not be paid until 15 January. 7) 8) 9)