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HAPPY VALLEY RESORT Trial Balance August 31, 2014 Cash Prepaid Insurance Supplies Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Dividends Rent Revenue Salaries and Wages Expense Utilities Expense Maintenance and Repairs Expense Credit Debit 24,600 5,400 4,300 40,000 132,000 36,000 s 6,500 6,800 120,000 100,000 5,000 80,000 53,000 9,400 3.600 S313.300 - 5313.300 Other data: 1. Insurance expires at the rate of $450 per month. 2. A count of supplies on August 31 shows S700 of supplies on hand. 3. Annual depreciation is $6,600 on buildings and $4,000 on equipment. 4. Unearned rent of $5,000 was earned prior to August 31. ED6. Rentals ofs1,600 were due from tenants at August 31.(Use Accounts Receivable) The mortgage interest rate is 9% per year. (The mortgage was taken out August 1 Instructions (a) Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31. (b) Prepare a ledger using T accounts. The opening trial balance amounts have been entered. Post the adjusting entries and find new account balances where appropriate. (c) Prepare an adjusted trial balance on August 31. (d) Prepare an income statement and a retained earnings statement for the quarter ended August 31 and a classified balance sheet as of August 31. (e) Identify which accounts should be closed on August 31

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