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, 2025
		Debit		Credit
Cash		$ 21,700
Prepaid Insurance		6,600
Supplies		4,700
Land		24,000
Buildings		124,000
Equipment		20,000
Accounts Payable				$ 6,600
Unearned Rent Revenue				6,700
Mortgage Payable				64,000
Common Stock				106,100
Retained Earnings				-0-
Dividends		5,000
Rent Revenue				80,200
Salaries and Wages Expense		44,800
Utilities Expenses		9,200
Maintenance and Repairs Expense		3,600
		$263,600		$263,600

Other data:

1. The balance in prepaid insurance is a one-year premium paid on June 1, 2025.
2. An inventory count on August 31 shows $459 of supplies on hand.
3. Annual depreciation rates are buildings (4%) and equipment (10%). Salvage value is estimated to be 10% of cost.
4. Unearned Rent Revenue of $3,760 was earned prior to August 31.
5. Salaries of $359 were unpaid at August 31.
6. Rentals of $843 were due from tenants at August 31.
7. The mortgage interest rate is 8% per year.

Instructions

1. Journalize the adjusting entries on August 31 for the 3-month period June 1August 31. (Omit explanations.)
2. Prepare an adjusted trial balance on August 31.