1. Gonzalez Resort opened for business on June 1 with eight...
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Accounting
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Gonzalez Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows Gonzalez Resort Trial Balance August 31, 2017 Debit Credit $1,960 Prepaid Insurance Supples Buildngs Equipment 2,000 12,000 1,600 Accounts $450 Payable Unearned Rent Revenue Mortgage Payable Common Stock 6,000 9,100 890 Retaned Earnngs Dividends 500 4,48 920 7,620 Revenue Salaries and Wages Expense Utilities Expense Maintenance and Repairs $24,520 24,520 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 $45 of supplies on hand. Annual depreciation rates are cottages (10%) and furniture (15%). Salvage value is estimated to be 10% of cost. 4 Unearned Rent Revenue of $380 was earned prior to August 31 s. Salaries of $38 were unpaid at August 31 6 Rentals of $80 were due from tenants at August 31 7. The mortgage interest rate is 6% per year Instructions (a) Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31 (b) Prepare an adjusted trial balance on August 31
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