HIGHLAND COVE RESORT Trial Balance August 31, 2014 Credit Debit S 17,520 Cash Prepaid insurance Supplies Land 4.240 995 35,000 150,000 Buildings Accumulated depreciation-buildings Furniture $ 47,750 33,000 Accumulated depreciation-furniture Accounts payable 12,925 8,500 Unearned revenue 15,000 Mortgage payable K. MacPhail, capital K. MacPhail, drawings Rent revenue Depreciation expense Insurance expense Interest expense Repairs expense Salaries expense Supplies expense Utilities expense 96,000 85,000 42,735 246,150 5,775 6,890 5,720 14,400 153,000 4,450 37,600 $511,325 $511.325 Additional information: 1. The company pays $6.360 for its annual insurance policy on March 31 of each year. 2. A count shows $560 of supplies on hand on August 31, 2014. 3. The buildings have an estimated useful life of 50 years. 4. The furniture has an estimated useful life of 10 years. 5. Customers must pay a $100 deposit if they want to book a room during peak times. An analysis of these bookings indicates that 150 deposits were received (all credited to Unearned Revenue) and only 40 of the deposits have not yet been earned by August 31, 2014. 6. The mortgage interest rate is 6.5% per year. Interest has been paid to August 1, 2014. 7. Salaries accrued to the end of August were $1,450. 8. The August utility bill of $3,420 is unrecorded and unpaid. 9. On August 31, Highland Cove has earned $1,350 of rent revenue from customers who are currently renting rooms but will not pay the amount owing until they check out in September. This amount is in addition to any deposits earned in item (5) above. 1) Prepare adjustment journal entries. 2) Prepare updated Trial Balance 3) Income statement 4) Balance sheet Also show your workings.