Prepare an adjusted trial balance on August 31. Question 1 Sheffield Resort open
ID: 2607073 • Letter: P
Question
Prepare an adjusted trial balance on August 31.
Question 1 Sheffield Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows SHEFFIELD RESORT TRIAL BALANCE AUGUST 31, 2017 Debit $26,500 11,400 9,500 26,000 126,000 22,000 Credit Cash Prepaid Insurance Supplies Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Retained Earnings Dividends Rent Revenue Salaries and Wages Expense Utilities Expenses Maintenance and Repairs Expense Totals $11,400 11,500 66,000 103,900 9,000 5,000 82,200 44,800 9,200 3,600 $284,000 $284,000 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 $448 of supplies on hand 3. Annual depreciation rates are (a) buildings (496) (b) equipment (10%) Salvage value is estimated to be 10% of cost 4. Unearned Rent Revenue of $3,909 was earned prior to August 31 5. Salaries of $398 were unpaid at August 31 6. Rentals of $773 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year.Explanation / Answer
SHEFFIELD RESORT
TRIAL BALANCE
AUGUST31,2017
Depreciation on buidling :126000*(1-.10)*.04*3/12=1134
Depreciation on Equipment : 22000*(1-.10)*.10*3/12=495
Interest on mortgage : 66000*.10*3/12=1320
SHEFFIELD RESORT
TRIAL BALANCE
AUGUST31,2017
Account Debit credit Cash 26500 Accounts receivable 773 Prepaid Insurance [11400-2850 expired] 8550 Supplies 448 Land 26000 Building 126000 Equipment 22000 Accumulated depreciation-Building 1134 Accumulated depreciation-equipment 495 Accounts payablrE 11400 Unearned rent revenue [11500-3909] 7591 Salaries payable 398 Mortgage payable 66000 Interest payable 1320 common stock 103900 Retained earning 9000 Dividend 5000 Rent revenue [82200+3909+773] 86882 salaries and wage expense [44800+398] 45198 Utilities expense 9200 Maintenance and repairs expense 3600 Insurance expense 2850 Supplies Expense [9500-448 Ending ] 9052 Depreciation expense-Building 1134 Depreciation expense-Equipment 495 Interest expense 1320 Total 288120 288120