Greco Resort opened for business on June 1 with eight air-conditioned units. Its
ID: 2493607 • Letter: G
Question
Greco Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. GRECO RESORT TRIAL BALANCE AUGUST 31, 2014 Debit Credit Cash $18,984 Prepaid Insurance 4,784 Supplies 2,984 Land 25,000 Buildings 125,000 Equipment 21,000 Accounts Payable $4,884 Unearned Rent Revenue 4,984 Mortgage Payable 65,000 Common Stock 91,384 Retained Earnings 12,900 Dividends 5,000 Rent Revenue 81,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 Totals $260,352 $260,352 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2014. 2. An inventory count on August 31 shows $670 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 $4,153 was earned prior to August 31. 5. Salaries of $464 were unpaid at August 31. 6. Rentals of $828 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year. Collapse question part (a) Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit 1. Aug. 31 2. Aug. 31 3. (a) Aug. 31 3. (b) Aug. 31 4. Aug. 31 5. Aug. 31 6. Aug. 31 7. Aug. 31Explanation / Answer
Serial No. Date Account Title & Explanations Debit ($) Credit ($) Calculation 1 Aug-31 Insurance Expense 1196 [4784*(3/12)] Prepaid Insurance 1196 (insurance expenses charged for the 3 months) 2 Aug-31 Supplies Expense 2314 Supplies 2314 (supplies expense of $2984-670 = $2314 for 3 months recorded) 3 Aug-31 Depreciation Expense-Building 1125 ((125000*90%)*4%)/4 Depreciation Expense-Equipment 472.5 ((21000*90%)*10%)/4 Accumulated depreciation 1597.5 (depreciation on building and equipment charged for 3 months 4 Aug-31 Unearned Rent Revenue 4153 Rent Revenue 4153 (Unearned Rent Revenue of $4,153 was earned prior to August 31) 5 Aug-31 Salaries 464 Salaries Payable 464 (Salaries of $464 were unpaid at August 31) 6 Aug-31 Accounts receivable 828 Rent revenue 828 ( Rentals of $828 were due from tenants at August 31) 7 Aug-31 Interest Expense 1300 65000*8%*(3/12) Interest payable 1300 (mortgage interest for 3 months recorded)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.