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Melton River Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows.;MELTON RIVER RESORT;Trial Balance;August 31, 2012;Account Number Debit Credit;101 Cash $ 19,653;126 Supplies 3,486;130 Prepaid Insurance 4,360;140 Land 26,728;143 Buildings 128,418;149 Equipment 28,660;201 Accounts Payable $ 6,663;209 Unearned Rent Revenue 7,286;275 Mortgage Payable 80,000;301 Owner?s Capital 101,922;306 Owner?s Drawings 4,896;429 Rent Revenue 84,113;622 Maintenance and Repairs Expense 3,710;726 Salaries and Wages Expense 50,536;732 Utilities Expense 9,537;$279,984 $279,984;In addition to those accounts listed on the trial balance, the chart of accounts for Melton River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation?Buildings, No. 150 Accumulated Depreciation?Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 620 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.;Other data;1. Insurance expires at the rate of $218 per month.;2. A count on August 31 shows $820 of supplies on hand.;3. Annual depreciation is $5,608 on buildings and $2,264 on equipment.;4. Unearned rent revenue of $4,515 was earned prior to August 31.;5. Salaries of $421 were unpaid at August 31.;6. Rentals of $4,135 were due from tenants at August 31. (Use Accounts Receivable.);7. The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.);Journalize the adjusting entries on August 31 for the 3-month period June 1?August 31.;(b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.);(c) Prepare an adjusted trial balance on August 31.


Paper#76852 | Written in 18-Jul-2015

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