On August 1, 2022, the Wayfarer Apartment Complex opened for business. The trial balance, after all transactions were recorded, but before adjusting entries, appears below. Wayfarer Apartments 5 6 Trial Balance August 31, 2022 7 Dr. Cr. 8 Cash 18,750 9 Supplies 19,500 10 Prepaid Insurance 12,600 11 Land 113,400 12 Buildings 525,000 13 Equipment 126,000 14 Accounts payable 35,250 15 Unearned rent revenue 24,750 16 Mortgage payable 270,000 17 Common stock 450,000 18 Rent revenue 67,500 19 Salaries and wages expense 22,500 20 Utilities expense 6,000 21 Advertising expense 3,750 22 847.500 847.500 23 24 Additional information: 25 1. The two-year insurance policy was aquired 8/1/22. 26 2. A count of supplies shows $11,500 of unused supplies on August 31. 27 3. Annual depreciation is $27,000 on the building and $22,500 on equipment. 28 4. The mortgage interest rate is 6%. (The mortgage was taken out on August 1.) 29 5. $18,750 of rent that was unearned on August 1 has been earned by August 31. 30 6. Salaries of $6,750 earned in August remain unpaid at August 31. 31 32 Required: 33 a. Journalize the adjusting entries on August 31. 34 b. Determine the adjusted balances in the accounts. You may prepare a ledger using T-accounts, entering the trial balance amounts and posting the adjusting entries, or you can use a worksheet approach. 35 36 c. Prepare an adjusted trial balance on August 31, 2022. 37 d. Prepare (1) an income statement and (2) a retained earnings statement for the month of August and (3) a classified balance sheet at August 31. 38 e. Prepare closing entries at August 31, 2022. 39 40