Question

Monty Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. MONTY RESORT TRIAL BALANCE AUGUST 31, 2017 Debit Credit Cash $23,200 Prepaid Insurance 8,100 Supplies 6,200 Land 24,000 Buildings 124,000 Equipment 20,000 Accounts Payable $8,100 Unearned Rent Revenue 8,200 Mortgage Payable 64,000 Common Stock 98,600 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 80,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 Totals $268,100 $268,100 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2017. 2. An inventory count on August 31 shows $471 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $3,916 was earned prior to August 31. 5. Salaries of $383 were unpaid at August 31. 6. Rentals of $757 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year. Collapse question part (a) Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit 1. Aug. 31 2. Aug. 31 3. (a) Aug. 31 3. (b) Aug. 31 4. Aug. 31 5. Aug. 31 6. Aug. 31 7. Aug. 31 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER Expand question part (b) The parts of this question must be completed in order. This part will be available when you complete the part above.

Answer 1

31-Aug	Insurance Expense	2025		=8100/12*3
	Prepaid Insurance		2025
31-Aug	Supplies Expense	5729		=6200-471
	Supplies		5729
31-Aug	Depreciation Expense -Buildings	1116		=(124000-12400)*4%/12*3
	Accumulated Depreciation - Buildings		1116
	Depreciation Expense - Equipment	450		=(20000-2000)*10%/12*3
	Accumulated Depreciation - Equipment		450
31-Aug	Unearned Rent Revenue	3916
	Rent Revenue		3916
31-Aug	Salaries Expense	383
	Salaries Payable		383
31-Aug	Accounts Receivable	757
	Rent Revenue		757
31-Aug	Interest Expense	1280		=64000*8%/12*3
	Interest Payable		1280