Question

The following is the unadjusted trial balance for Panorama Resort Inc. at its year end, December 31, 2018. The company adjusts its accounts annually.

	Debit	Credit
Cash	$ 42,580
Accounts receivable	17,935
Supplies	12,980
Prepaid insurance	10,200
Land	85,000
Buildings	310,000
Accumulated depreciation—buildings		$ 62,000
Accounts payable		14,600
Unearned revenue		44,520
Note payable, due 2021		148,000
Common shares		80,000
Retained earnings		62,000
Rent revenue Salaries expense	348,200	525,000
Utilities expense	39,395
Repairs and maintenance expense	21,560
Interest expense	7,850
Income tax expense	21,000
	$874,120	$874,120

Additional information is provided below:

1. A count of supplies on December 31st shows $4,150 of supplies on hand.
2. The building has an estimated 20 year life with no residual value and straight-line depreciation is used.
3. Salaries of $1,640 were unpaid on December 31st.
4. Rental revenue for 5 nights at $150 per night during the last week of December has not been paid (received) or recorded.
5. A two year insurance policy was purchased September 1, 2018.
6. Income tax payable is estimated to be $1,920.
7. Of the unearned revenue, it was determined that $28,500 remains unearned.
8. Interest on the note payable is $785 per month and was last paid on October 31, 201
9. The December utility bill of $3,380 has not year been recorded or paid.

REQUIRED:

Prepare all necessary adjusting journal entries for their year-end, December 31, 2018. Omit explanations but show calculations. Round all calculations to the nearest dollar.

Answer 1

DESCRIPTION				DEBIT	CREDIT
Depriciation Expense				$31,000.00
Accumulated Depriciation - Building					$31,000.00
( Depriciation Charged 310000/10)
Salaries				$1,640.00
Salary Payable					$1,640.00
( Salary recognized but not paid)
Accounts Receivable				$750.00
Rent revenue					$750.00
(Rent Revenue Recognized 150*5)
Insurance				$1,700.00
Prepaid Insurance					$1,700.00
(Insurance Expense Recognized for the Year 10200*4/24)
Income Tax Expense				$1,920.00
Income Tax Payable					$1,920.00
( Income Tax payable Recognized and expense charged)
unearned Revenue				$16,020.00
Revenue					$16,020.00
(uneraned revenue decreased and amount recognized
as revenue 44520 - 28500)
Interest expense				$1,570.00
Interest Payable					$1,570.00
(Interest Charged as expense and credited to Payble account
785*2)
Utilities expense				$3,380.00
Utilities Payable					$3,380.00
(Utilities Charged as expense and credited to Payble account)

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