Uhura Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows (in thousands).

Other data:
1. The balance in prepaid insurance is a 1-year premium paid on June 1, 2019.
2. An inventory count on August 31 shows ¥650 of supplies on hand.
3. Annual depreciation rates are buildings (4%) and equipment (10%). Residual value is estimated to be 10% of cost.
4. Unearned rent revenue of ¥3,800 should be recognized as revenue prior to August 31.
5. Salaries and wages of ¥375 were unpaid at August 31.
6. Rentals of ¥800 were due from tenants at August 31.
7. The mortgage note is dated 1/1/2019. The mortgage interest rate is 8% per year.
Instructions
a. Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31. (Omit explanations.)
b. Prepare an adjusted trial balance on August 31.

Transcribed Image Text:

Uhura Resort Trial Balance August 31, 2019 Debit Credit ¥ 19,600 Cash Prepaid Insurance 4,500 Supplies 2,600 Land 20,000 Buildings 120,000 Equipment 16,000 ¥ 4,500 Accounts Payable 4,600 Unearned Rent Revenue Mortgage Payable 50,000 Share Capital-Ordinary 100,000 Retained Earnings 5,000 Dividends Rent Revenue 86,200 Salaries and Wages Expense 44,800 Utilities Expense 9,200 Maintenance and Repairs Expense 3,600 ¥245,300 ¥245,300