Presented below is the Trial Balance of Spring Lake Resorts. The Resorts opened on June 1, 2016. SPRING LAKE RESORTS Trial Balance August 31, 2016 Dr. Cr. Cash $19,600 Accounts Receivable Prepaid Rent 4,500 Supplies 2,600 Land 20,000 Cottages 120,000 Furniture 16,000 Accounts Payable 4,500 Advanced rent revenue 4,600 Mortgage Payable 60,000 Common Stock 100,000 Dividends 5,000 Rent revenue 76,200 Salaries Expense 44,800 Utilities Expense 9,200 Maintenance Expense 3,600 Totals $245.300 $245.300 TURN OVER Page 2 Other data: The balance in prepaid insurance is insurance paid on June 1, 2016 for a 1-year period. An inventory count on August 31 shows $450 of supplies on hand. Cottages are depreciated over 25 years and furniture over 10 years. Salvage on furniture is 10% of cost. Advanced rentals of $3,800 were earned prior to August 31. Salaries of $375 were unpaid at August 31. Rentals of $800 were due from tenants at August 31. Required: (9 marks) a) Prepare Adjusting Journal entries at August 31, 2016. b) Prepare an Income Statement for Spring Lake Resorts for the period ended August 31, 2016. (8 marks) c) Prepare a Balance Sheet for Spring Lake Resorts as at August 31, 2016. (12 marks) d) Explain the difference between Cash Based Accounting and Accrual Based Accounting. (6 marks)