592198

Maquoketa River
Resort opened for

business on June 1
with eight air-
conditioned units.
Its trial balance
before adjustment
on August 31 is as
follows.
Answer 3
MAQUOKETA RIVER Adjusted Trial Balance
RESORT Trial
Balance August 31,
Account Number
2014 Debit Credit
101 Cash $ 19,600
126 Supplies $ 800
130 Prepaid Insurance $ 5,100
140 Land $ 25,000
143 Buildings $ 125,000
149 Equipment $ 26,000
201 Accounts Payable $ 6,500
208 Unearned Rent Revenue $ 2,600
275 Mortgage Payable $ 80,000
301 Owner's Capital $ 100,000
306 Owner's Drawings $ 5,000
429 Rent Revenue $ 88,800
622 Maintenance and Repairs Expense $ 3,600
726 Salaries and Wages Expense $ 51,400
732 Utilities Expense $ 9,400
Interest expense $ 600
Interest payable $ 600
Salaries and wages payable $ 400
Insurance expense $ 900
Supplies expense $ 2,500
Depreciation expesne $ 8,400
Accumulated Depreciation-Buildings $ 6,000
Accumulated Depreciation-Equipment $ 2,400
Accounts Receivable $ 4,000
Receivable, No. 144 $ 287,300 $ 287,300

Accumulated
Depreciation—
Buildings, No. 150
Accumulated
Depreciation—
1. Insurance expires $ -
Equipment,
at the rate ofNo. 212
$300
per month.
2. A count on August
31 shows $800
depreciation is of
supplies on hand.
$6,000 on buildings Debit Credit
revenue of $4,800
and $2,400of
5. Salaries on$400 $ 900
was earned prior to
unpaid
were due at
from $ 900
August
interest 31.
tenants at August
rate is 9%
31. (Use Accounts
per year. (The
mortgage
Instructionswas taken $ 2,500
adjusting entries on
August 31 for the 3-
$ 2,500
month period June
trial balance
amounts and post
adjusted trial
balance on August
equity statement for
the 3 months $ 8,400
$ 6,000
$ 2,400
$ 4,800
$ 4,800
$ 400
$ 400
$ 4,000
$ 4,000
$ 600
$ 600
Answer D
Income Statement
Rent Revenue $ 88,800
Maintenance and Repairs Expense $ 3,600
Salaries and Wages Expense $ 51,400
Utilities Expense $ 9,400
Total expenses $ 76,800
$ 12,000
Owner's equity statement

Beginning Balance $ 100,000
less: drawings $ 5,000
add: net income $ 12,000
Ending Balance $ 107,000
Balance Sheet
Assets Amount Liabilities & Capital
Cash $ 19,600 Owner's Capital
Supplies $ 800 Accounts Payable
Prepaid Insurance $ 5,100 Unearned Rent Revenue
Land $ 25,000 Mortgage Payable
Buildings $ 125,000 Interest payable
Equipment $ 26,000 Salaries and wages payable
Accounts Receivable $ 4,000 Accumulated Depreciation-Buildings

Accumulated Depreciation-Equipment
$ 205,500
Answer B
Ledger accounts
Cash
Balance
Supplies
Balance
Prepaid Insurance
Balance
Land
Balance
Buildings
Balance
Equipment
Balance
Accounts Payable
Amount Balance
$ 107,000
$ 6,500 Unearned Rent Revenue
$ 2,600 Rent Revenue
$ 80,000 Balance
$ 600
$ 400 Mortgage Payable
$ 6,000 Balance
$ 2,400
Owner's Capital
$ 205,500 Balance
$ -
Owner's Drawings
Balance
Rent Revenue
Balance
Maintenance and Repairs Expense

Balance
Salaries and Wages Expense

Balance
Salaries and wages payable
Utilities Expense
Balance
Interest expense
Interest payable
Interest payable
Balance
Salaries and wages payable

Balance
Insurance expense
Prepaid Insurance
Supplies expense
Supplies
Accumulated Depreciation-Buildings
Balance
Balance
Depreciation expesne
Accumulated Depreciation-Buildings
Accounts Receivable
Rent Revenue
$ 19,600 Balance $ 19,600
$ 3,300 Supplies expense $ 2,500

Balance $ 800
$ 3,300 $ 3,300
$ 6,000 Insurance expense $ 900

Balance $ 5,100
$ 6,000 $ 6,000
$ 25,000 Balance $ 25,000
$ 125,000 Balance $ 125,000
$ 26,000 Balance $ 26,000
$ 6,500 Balance $ 6,500
$ 4,800 Balance $ 7,400

$ 2,600
$ 7,400 $ 7,400
$ 80,000 Balance $ 80,000

$ 100,000 Balance $ 100,000
$ 5,000 Balance $ 5,000
$ 88,800 Balance $ 80,000
Unearned Rent Revenue $ 4,800

$ 88,800 $ 88,800
$ 3,600 Balance $ 3,600
$ 51,000 Balance $ 51,400

$ 400
$ 51,400 $ 51,400
$ 9,400 Balance $ 9,400
$ 600 Balance $ 600
$ 600 Interest expense $ 600
$ 400 Salaries and wages expense $ 400
$ 900 Balance $ 900
$ 2,500 Balance $ 2,500
$ 6,000 Depreciation expesne $ 6,000
$ 2,400 Depreciation expesne $ 2,400

$ 6,000 Balance $ 8,400
$ 2,400
$ 8,400 $ 8,400
$ 4,000 Balance $ 4,000

Answer 3
Adjusted Trial Balance
Debit Credit
Cash $ 19,600
Supplies $ 800
Prepaid Insurance $ 5,100
Land $ 25,000
Buildings $ 125,000
Equipment $ 26,000
Accounts Payable $ 6,500
Unearned Rent Revenue $ 2,600
Mortgage Payable $ 80,000
Owner's Capital $ 100,000
Owner's Drawings $ 5,000
Rent Revenue $ 88,800
Maintenance and Repairs Expense $ 3,600
Salaries and Wages Expense $ 51,400
Utilities Expense $ 9,400
Interest payable $ 600
Salaries and wages payable $ 400
Accumulated Depreciation-Buildings $ 6,000
Accumulated Depreciation-Equipment $ 2,400
$ 287,300 $ 287,300

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Maquoketa River

Resort opened for

Receivable, No. 144 $ 287,300 $ 287,300

Owner's equity statement

Accounts Receivable $ 4,000 Accumulated Depreciation-Buildings

Maintenance and Repairs Expense

Salaries and Wages Expense

Salaries and wages payable

$ 3,300 Supplies expense $ 2,500

$ 6,000 Insurance expense $ 900

$ 25,000 Balance $ 25,000

$ 125,000 Balance $ 125,000

$ 26,000 Balance $ 26,000

$ 6,500 Balance $ 6,500

$ 4,800 Balance $ 7,400

$ 80,000 Balance $ 80,000

$ 5,000 Balance $ 5,000

$ 88,800 Balance $ 80,000

Unearned Rent Revenue $ 4,800

$ 3,600 Balance $ 3,600

$ 51,000 Balance $ 51,400

$ 9,400 Balance $ 9,400

$ 600 Balance $ 600

$ 600 Interest expense $ 600

$ 400 Salaries and wages expense $ 400

$ 900 Balance $ 900

$ 2,500 Balance $ 2,500

$ 6,000 Depreciation expesne $ 6,000

$ 2,400 Depreciation expesne $ 2,400

$ 4,000 Balance $ 4,000

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