Spring river resort opened for business on July 1,2011 with air conditioned units .Its trail balance before adjustment on June 30,2012 as as follow.

Spring river resort

trail balance

June 30,2012

Name of accounts Debit(Tk) Credit(Tk)

Cash 19600 ...............

Supplies 3300 ...........

Prepaid Insurance 6000 .............

Land 25000 .............

Cottage 125000 ............

Furniture 26000 ............

Account payable ........... 6500

Unearned rent ............. 7400

Mortgage payable ............ 80000

P. Orbis capital ............. 100000

P. Orbis drawing 5000 ..............

Rent revenue ............. 80000

Repair expense 3600 ............

Salaries expense 51000 ............

Utilities expense 9400 .............

Total 273900 273900

Adjustment :

1. Insurance expire at the rate of Tk 400 per month.
2. Account on June 30 shows Tk 900 of supplies on hand.
3. Annual depreciation is at Tk 3600 on cottages and Tk 2400 on furniture.
4. Unearned rent of Tk 4100 was earned prior to June 30.
5. Salaries of Tk 400 were unpaid at June 30.
6. Rental of Tk 800 were due from tenants at June 30.
7. Utilities expense of Tk 600 was accrued in June 30.
8. The mortgage interest rate is 9% per year. The mortgage was taken out on November 30,2011.

Requirement:

A. Provide adjusting entries on June 30,2012 (for the period July 1,2011 - June 30,2012.

B. Prepare adjusted trail balance on June 30,2012.

C. Prepare financial statement(Income statement, owners equity,Balance sheet)