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Exercise 2: Debit Debit 19.600 3.300 6,000 25,000 125,000 26,000 River Resort opened for business on June 1 with eight air-conditioned units. Its trail balance before adjustments on August 31 is as follows. Before Adjustment After adjustments Credit Credit Cash Supplies Prepaid insurance Land Cottage Building Furniture Accounts payable 6,500 Uneamed rent 7.400 Mortgage payable 80,000 Capital 100,000 Owner's drawings 5,000 Revenue 80,000 Repair expenses 3.600 Salaries expenses 51.000 Utilities expenses 9,400 273.900 273.900 The following details need to be adjusted 1. Insurance expenses for a month is SR 400. 2. A count on August 31, shows SR 600 of supplies on hand balance. 3. Unearned revenue of SR 4,100 was earned prior to 31 August. Instructions 1. Journalize the adjustments and prepare T accounts. 2. Prepare adjusted trail balance 3. Prepared income statement and classified balance sheet as at 31 august