Showa below are the Trial Balance and Adjusted Trial Balance columns of the worksheet pre- pared for Fisher Insurance Agency for the month ended January 31, 2001. 'E WH LC Trial Balance Dr Cr Adjusted Trial Balance Dr Cr $ 4.980 3.000 600 6.600 $ 4.980 3.850 240 6.600 s 2.420 1.660 Balance sheet accounts: Cash Commissions Receivable Office Supplies .. Office Equipment Accumulated Depreciation: Office Equipment. Accounts Payable | Salaries Payable Jnearned Commissions Pat Fisher, Capital Pat Fisher, Drawing.. Income Statement Accounts: Commissions Earned Salaries Expense Rent Expense.. Office Supplies Expense. Depreciation Expense: Office Equipment $ 2.530 1.660 550 190 12,300 400 12.300 1,000 1,000 6,900 6.000 1,500 6.550 7,960 1,500 360 110 $25.190 $25,190 S23.680 $23.680 By comparing the two trial balances shown above, it is possible to determine which accounts have been adjusted. You are to prepare the adjusting journal entries that must have been made to cause these changes in account balances. Include an explanation as part of each adjusting entry. . Alta Sequoia Resort adjusts its accounts monthly and closes its accounts annually Mose guests of enve. A few guests pay in advance for moms, and these amounts are credited to Unearned Rental the resont pay at the time they check out, and the amounts collected are credited to Rentals Peo! Revenue at the time of receipt. The following information is available as a source for preparing adjusting entries at December 31: 2. Salaries camed by employees but not yet recorded or paid amount to $7.900. b. As of December 31, All Sequoia has eamed $11.075 rental revenue from current guests who will not be billed until they are ready to check out. (Debit Rent Receivable.) c. On November I. a suite of rooms was rented to a corporation for six months at a monthly rental of $3.200. The entire six months' rent of $19,200 was collected in advance and credited to Uncamed Rental Revenue. d. A limousine to carry guests to and from the airport had been rented beginning December 19 from Transport Rentals, Inc., at a daily rate of $120. No rental payment has yet been made. (The limousine has been rented for 13 days in December.) e. A six-month loan in the amount of $30,000 had been obtained on December 1. Interest is to be computed at a rate of 10% per year and is payable when the loan is due. No interest has been paid and no interest expense has been recorded. 1. Depreciation on the resort's buildings is based on an estimated useful life of 30 years. The original cost of the buildings was $1.755.000. Alta Sequoia uses the straight-line method. & In December, Alla Sequoia Resort entered into an agreement to host the annual symposium of ACE (Americans for a Clean Environment) in April of next year. The resort expects to cam rental revenue of at least $45,000. b. A one-year fire insurance policy had been purchased on September I. The premium of 57.2006 the entire life of the policy had been paid on September I and recorded as Unexpired Insurance. Instructions 1. For each of the above lettered paragraphs, draft a separate adjusting joumal entry (including explanation) if the information indicates that an adjusting entry is needed. One or more of the above paragraphs may not require any adjusting entry. b. As of December 31, how much of the $19,200 received on November I has been carned by Alta Sequoia? Is this amount the same as the amount of revenue recognized in your adjusting entry for item c? Explain. KENT CINEMA Trial Balance July 31, 20- Cash Precad Film Rental Land Buting Accumulated Depreciation Building Projecton Equipment Asuvated Depreciation Projection Equipment Notes Payable Accounts Payable Uneamed Admissions Revenue (YMCA) Thong. Capital . Ther; Drawing Admissions Revenue Sataries Expense Light and Power Expense S 20 000 31 200 20 000 162 000 5 16 500 35 000 3.000 190.000 4,400 1.000 103.400 3.500 36.900 a.100 1.800 $349 200 $349 200 Other Data 2. Film rental expense for the month is $15.200. However, the film rental expense for several months had been paid in advance. The building is being depreciated over a period of 20 years (240 months). c. The projection equipment is being depreciated or a period of five years 150 months). d. At July 31. accrued interest payable on the note payable amounts to $1.650. No entry has yet been made to record interest expense for the month of July. e. Kent Cinema allows the local YMCA to bring children attending summer camp to the movies on any weekday afternoon for a fixed fee of $500 per month. On May 28the YMCA made a $1.500 advance payment covering the months of June July, and August 1. Kent Cinema receives a percentage of the revenue eamed by Tastie Corporation, the conce- sionaire operating the snack bar. For snack bar sales in July, Tastie owes Kent Cinema 52.250 payable on August 10. No entry has yet been made to record thus revenue. Credit Concessions Revenue) Salarie: arned by employees but not recorded or paid as of July 31 amount to $1.500. No e- try has been made to record this liability and expense. Instructions 2. Prepare a 10-column worksheet utilizing the trial balance and adjusting data provided. Include at the bottom of the worksheet a brief explanation keyed to each adjusting entry. Kent Cinema has been operating throughout the year and adjusts its accounts monthly. Why does no depreciation expense appear in the above unadjusted trial balance of July 3/? Would you expect this situation to recur in the unadjusted trial balance at Augu 31? Explain briefly. Island Hopper is an airline providing passenger and freight service among some Pacific islands. The accounts are adjusted and closed each month. At June 30 the trial balance shown on the next page was prepared from the ledger