Problem # 2 (Adjusting Entries) (45 points) Gonzalez Resort opened for business on June 1 with eight air-conditioned units. Its trial balance orn August 31 is as follows. GONZALEZ RESORT TRIAL BALANCE AUGUST 31, 2017 Debit Credit $ 1,960 440 260 2,000 12,000 1,600 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 Expense Maintenance and Repairs Expense $ 450 460 6,000 9,100 890 500 7,620 4,480 920 360 24,520 $24,520 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 $45 of supplies on hand. 3. Annual depreciation rates are cottages ( 10%) and furniture ( 15%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $380 was earned prior to August 31 5. Salaries of S38 were unpaid at August 31 6. Rentals of $80 were due from tenants at August 31 7. The mortgage interest rate is 6% per year. Instructions (a) Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31 (b) Prepare an adjusted trial balance on August 31