Question
Hi , I need help with this question. The following is the unadjusted trial balance for Panorama Resort Inc. at its year end, December 31,
Hi , I need help with this question.
The following is the unadjusted trial balance for Panorama Resort Inc. at its year end, December 31, 2018. The company adjusts its accounts annually.
| Debit | Credit |
|
Cash | $ 42,580 |
|
|
Accounts receivable | 17,935 |
|
|
Supplies | 12,980 |
|
|
Prepaid insurance | 10,200 |
|
|
Land | 85,000 |
|
|
Buildings | 310,000 |
|
|
Accumulated depreciationbuildings |
| $ 62,000 |
|
Accounts payable |
| 14,600 |
|
Unearned revenue |
| 44,520 |
|
Note payable, due 2021 |
| 148,000 |
|
Common shares |
| 80,000 |
|
Retained earnings |
| 62,000 |
|
Rent revenue Salaries expense |
348,200 | 525,000 |
|
Utilities expense | 39,395 |
|
|
Repairs and maintenance expense | 21,560 |
|
|
Interest expense | 7,850 |
|
|
Income tax expense | 21,000 |
|
|
|
|
|
|
| $874,120 | $874,120 |
|
Additional information is provided below:
- A count of supplies on December 31st shows $4,150 of supplies on hand.
- The building has an estimated 20 year life with no residual value and straight-line depreciation is used.
- Salaries of $1,640 were unpaid on December 31st.
- Rental revenue for 5 nights at $150 per night during the last week of December has not been paid (received) or recorded.
- A two year insurance policy was purchased September 1, 2018.
- Income tax payable is estimated to be $1,920.
- Of the unearned revenue, it was determined that $28,500 remains unearned.
- Interest on the note payable is $785 per month and was last paid on October 31, 201
- The December utility bill of $3,380 has not year been recorded or paid.
REQUIRED:
Prepare all necessary adjusting journal entries for their year-end, December 31, 2018. Omit explanations but show calculations. Round all calculations to the nearest dollar
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