Trial balance for Indigo Corporation on August 31 is follows: Trial Balance August 31, 2020 Debit Credit Cash $6,000 Prepaid insurance 3,200 Supplies 1.750 Land 19,500 Buildings 141,000 Accumulated depreciation-buildings $20,304 Equipment 14,000 Accumulated depreciation-equipment 3,780 Accounts payable 4,200 Unearned rent revenue Notes payable 76,000 Common shares 80.900 Retained earnings 4,750 Dividends 5,300 Rent revenue 67,000 Salaries and wages expense 44,304 Insurance expense 11,200 Interest expense 3,800 Utilities expense Repairs and maintenance expense 3,480 $261.134 $261,134 4,200 7,600 Additional information: 1. 2. 3. The balance in Prepaid Insurance includes the cost of four months premiums for an insurance policy that will expire on September 30, 2020. An inventory count on August 31 shows $570 of supplies on hand. Buildings and equipment are depreciated straight-line. From the date of purchase, the buildings have an estimated useful life of 25 years, and the equipment has an estimated useful life of 10 years. For both asset categories, residual value is estimated to be 10% of cost. (1) Rent revenue includes amounts received for September rentals in the amount of $7,600. (ii) Of the unadjusted Unearned Rent Revenue of $4,200, one half was earned prior to August 31. Salaries of $390 were unpaid at August 31. Rental fees of $740 were due from tenants at August 31. Use Accounts Receivable. The note payable interest rate is 10% per year, and the note has been outstanding since December 1, 2019. No principal repayments are due. Interest is paid twice per year (on June 1 and December 1). 4. 5. 6. 7. Journalize the adjusting entries on August 31 for the three-month period June 1 to August 31 (Journal entries from 1 to 7) Account Titles and Explanation Debit Credit