Prepare adjusting entries, Prepare closing entries for Nash Co. on December 31, 2017, and more.

Culver Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. CULVER RESORT TRIAL BALANCE AUGUST 31, 2017 Cash Prepaid Insurance Supplies Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Retained Earnings Dividends Rent Revenue Salaries and Wages Expense Utilities Expenses Maintenance and Repairs Expense Totals Debit $21,100 6,000 4,100 30,000 130,000 26,000 Credit $6,000 6,100 70,000 102,500 9,000 5,000 86,200 44,800 9,200 3,600 $279,800 $279,800 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2017. 2. An inventory count on August 31 shows $465 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $3,618 was earned prior to August 31. 5. Salaries of $383 were unpaid at August 31. 6. Rentals of $812 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year. (a) Your answer is correct. Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Date 1. Aug. 31 Account Titles and Explanation Insurance Exp Debit 1500 Prepaid Insura 2. Aug. 31 Supplies Expe 1500 3635 Supplies 3. (a) Aug. 31 Depreciation E 3635 1170 Accumulated D 3. (b) Aug. 31 Depreciation E 1170 585 Accumulated D 4. Aug. 31 Unearned Ren 585 3618 Rent Revenue 5. Aug. 31 Salaries and W 3618 383 Salaries and W 6. Aug. 31 Accounts Rec 383 812 Rent Revenue 7. Aug. 31 Interest Expen Interest Payab Click if you would like to Show Work for this question: Credit 812 1400 1400 Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT (b) Prepare an adjusted trial balance on August 31. CULVER RESORT Adjusted Trial Balance August 31, 2017 Debit Credit $ $ $ $ Totals Presented below are selected account balances for Nash Co. as of December 31, 2017. Inventory 12/31/17 Common Stock Retained Earnings Dividends Sales Returns and Allowances Sales Discounts Sales Revenue $60,770 74,170 45,080 17,873 11,908 15,070 408,750 Cost of Goods Sold Selling Expenses Administrative Expenses Income Tax Expense $229,017 16,133 37,525 30,300 Prepare closing entries for Nash Co. on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No Account Titles and Explanation . 1. (To close accounts with credit balances) 2. Debit Credit (To close accounts with debit balances) 3. (To close net income / (loss)) 4. (To close dividends) Pearl, M.D., maintains the accounting records of Pearl Clinic on a cash basis. During 2017, Dr. Pearl collected $139,849 from her patients and paid $50,290 in expenses. At January 1, 2017, and December 31, 2017, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. (All long-lived assets are rented.) Accounts receivable Unearned service revenue Accrued expenses Prepaid expenses January 1, 2017 $9,545 2,641 3,345 1,861 December 31, 2017 $16,822 3,952 1,973 3,145 Prepare a schedule that converts Dr. Pearl's "excess of cash collected over cash disbursed" for the year 2017 to net income on an accrual basis for the year 2017. PEARL, M.D. Conversion of Cash Basis to Accrual Basis For the Year 2017 $ : : : : $ A review of the ledger of Marin Company at December 31, 2017, produces the following data pertaining to the preparation of annual adjusting entries. 1 . 2 . Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday for the current week. Five employees receive $730 each per week, and three employees earn $470 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. Unearned Rent Revenue $407,430. The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5,230 security deposit that is not refundable until occupancy is terminated. At December 31, the company had the following rental contracts that are paid in full for the entire term of the lease. Date Nov. 1 Dec. 1 3 . Term (in months) 6 6 Monthly Rent $6,540 $6,840 Number of Leases 5 4 Prepaid Advertising $10,800. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as shown below. Contract A650 B974 Date May 1 Oct. 1 Amount $4,800 6,000 Number of Magazine Issues 12 24 The first advertisement runs in the month in which the contract is signed. 4 . Notes Payable $60,600. This balance consists of a note for one year at an annual interest rate of 12%, dated June 1. Prepare the adjusting entries at December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 2,520.) No Account Titles and . Explanation 1. 2. 3. 4. Debit Credit