Maquoketa River Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows. MAQUOKETA RIVER RESORT Trial Balance August 31, 2017 Account Number Debit Credit 101 Cash $ 19,600 126 Supplies 3,300 Prepaid Insurance 130 6,000 140 Land 25,000 141 Buildings 125,000 149 Equipment 26,000 201 Accounts Payable $ 6,500 208 Unearned Rent Revenue 7,400 275 Mortgage Payable 80,000 311 Common Stock 100,000 332 Dividends 5,000 429 Rent Revenue 80,000 622 Maintenance and Repairs Expense 3,600 .726 Salaries and Wages Expense 51,000 732 Utilities Expense 9.400 $273.900 $273.900 In addition to those accounts listed on the trial balance, the Chart of AAccounts also contains: Accts Recble: Accum. Deprec.(Bldgs): Accum. Deprec. (Equip): Salaries & Wages Pybl: Interest Pybl; Deprec. Expense; Supplies Expense; Interest Expense, and Insurance Expense. In addition to those accounts listed on the trial balance, the Chart of AAccounts also contains: Accts Recble: Accum. Deprec.(Bldgs): Accum. Deprec. (Equip): Salaries & Wages Pybl; Interest Pybl; Deprec. Expense; Supplies Expense; Interest Expense, and Insurance Expense. Other data for adjustments: 1. Insurance expires at the rate of $300 per month. (Hint: make the adjustment for 3 months, not just 1.) 2. A count on August 31 shows $800 of supplies on hand. (Hint: calculate the expense). 3. Annual depreciation is $6,000 on buildings & $2,400 on equipment. (Hint: amounts given are "annual"). 4. Unearned rent revenue of $4,800 has been earned. 5. Salaries of $400 were unpaid at August 31. 6. Rentals of $4,000 were due from tenants at August 31. (Hint: it says "were duo" meaning NOT paid.) 7. The mortgage interest rate is 9% per year. (Mortgage was taken out on August 1.) (Hint: a 12% ANNUAL mortgage is the same as 1% per month: 6% annual = % per month)) Instructions (a) Journalize the adjusting entries on August 31 for the 3-month period June 1 - August 31. (You do NOT have to show your calculations for the journal entry amounts ... just get them right) (b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.) (Skip this instruction) (e) Prepare an adjusted trial balance on August 31. (This instruction is completed for you). (d) Prepare: An income statement for the 3 months ending August 31 and a balance sheet as of August 31 a retained earnings statement ... Problem 3-2B .. B... working papers Date Account Names Debit Credit Aug 31 #2 ... $800 is in inventory. How much should be "expensed" (was "used up? (#1) Aug 31 (#2) > Le consrate Date Account Names Debit Credit Aug 31 #2 ... $800 is in inventory. How much should be "expensed" (was used up? (#1) Aug 31 (#2) Aug 31 Use separate "Depreciation accounts for each of the 2 assets. (#3) Aug 31 (#4) Aug 31 Note that "CASH" has NOT been paid out (#5) Aug 31 (#6) Aug 31 9% interest is for one year (12 months) (#7) Instruction (c) ... completed for you. MAQUOKETA RIVER RESORT Adjusted Trial Balance August 31, 2017 Cash Accounts Receivable Supplies Prepaid Insurance Land Buildings Accumulated Depreciation - Bldgs Equipment Accumulated Depreciation - Equip Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Interest Payable Mortgage Payable Common Stock Dividends Rent Revenue Depreciation Expense Maintenance and Repairs Expense Supplies Expense Interest Expense Insurance Expense Salaries and Wages Expense Utilities Expense Debit Credit $ 19,600 4,000 800 5,100 25,000 125,000 $ 1,500 26,000 600 6,500 2,600 400 600 80,000 100,000 5,000 88,800 2,100 3,600 2,500 600 900 51,400 9.400 $281,000 $281,000 Critical info for you ... In financial statements (like below) the left column lists the accounts names. The right two columns are NOT debit or credit. The center column is for "details" amounts or subtotals while the right-most column is for totals. (btw- the green column is something / just placed there for instructional purposes - it is not part of a financial statement Instruction (d) MAQUOKETA RIVER RESORT Complete the heading. Don't forget to "total" your 7 expenses Check your math to verify that you have the correct Net Income (Revenue - Expenses). If your math does not work" / will deduct 2 points Check your math to verify that you have the correct Net Income (Revenue - Expenses). If your math does not work"I will deduct 2 points Don't forget to complete the heading (erase this) Revenues: Expenses: > Total Expenses Net Income 18,300 MAQUOKETA RIVER RESORT Retained Earnings Statement For the Three Months Ended August 31, 2017 Retained Earnings, June 1 0 Add: Net Income 18,300 18,300 Less: Dividends 5,000 Retained Earnings, August 31 13,300 There may be too many or extra lines. Add one or take one - as needed. Critical info for you ... In financial statements the left column lists the accounts names. The right two columns are NOT debit or credit. The center column is for details" amounts or subtotals while the right-most column is for totals. (btw - the green column is something I just placed there for instructional purposes - it is not part of a financial statement. MAQUOKETA RIVER RESORT Complete the heading. If Wur math MAQUOKETA RIVER RESORT Complete the heading. If your math does not work (see the bottom "Total Liabilities & Stockholders Equity) - I will deduct 2 points Bulding - Accum Deprec is a 2 line calculation shown in the middle column. The "answer" of goes in the right column. Same with Equipment **. Or Check the textbook the answers below Don't forget to complete the heading (erase this) Assets Total Assets Total Assets Don't forget to "total" your 5 liabilities If your math does not work (see the bottom "Total Liabilities & Stockholders Equity) - I will deduct 2 points. Don't forget to label and write in the amount for "Total Liabilities" (in the right-most column). Liabilities and Stockholders' Equity Liabilities: Total Liabilities Stockholders Equity: Total liabilities & Stockholders' equity 203,400