Vizquel Resort opened for business on June 1 with eight air-conditioned units. It has already recorded and posted its regular transactional entries from June 1st through August 31st, leading to the balances reported below in its August 31st trial balance. Now it is time for them to record their adjusting entries.

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

Other data:

Credit

$ 450 460 6,000 9,100 890

Required:

(a) Journalize the adjusting entries (in proper journal entry form) on August 31 for the 3-month period of June 1August 31. (And please note that in your entries, you will have to create/use some accounts that are not listed in the above trial balance.)

(b) Notice that your adjusting journal entries above have resulted in updated (adjusted) account balances for several accounts. Therefore, prepare an adjusted trial balance (listing all of the accounts with their current balances) on August 31.