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P3-2A

Course: ACC 101, Spring 2012
School: University of Phoenix
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Word Count: 567

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Journalize (a) the adjusting entries on August 31 for the 3-month period June 1August 31. GENERAL JOURNAL Date Account Titles and Explanation Reference 2008 Adjusting Entries Aug. 31 Insurance Expense 722 Prepaid Insurance 130 (To record insurance expired) 31 Supplies Expense Supplies (To record supplies used) Debit J1 Credit 1,200 1,200 631 126 2,700 31 Depreciation Expense-Cottages 620 Depreciation...

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Journalize (a) the adjusting entries on August 31 for the 3-month period June 1August 31. GENERAL JOURNAL Date Account Titles and Explanation Reference 2008 Adjusting Entries Aug. 31 Insurance Expense 722 Prepaid Insurance 130 (To record insurance expired) 31 Supplies Expense Supplies (To record supplies used) Debit J1 Credit 1,200 1,200 631 126 2,700 31 Depreciation Expense-Cottages 620 Depreciation Expense-Furniture 621 Accumulated Depreciation-Cottages 144 Accumulated Depreciation-Furniture150 (To record depreciation) 1,500 600 31 Unearned Rent 208 Rent Revenue 429 (To record revenue for rent earned) 4,100 2,700 1,500 600 4,100 31 Salaries Expense Salaries Payable (To record accrued salaries) 726 212 400 31 Accounts Receivable Rent Revenue (To record revenue for rent due) 112 429 1,000 31 Interest Expense 718 Interest Payable 230 (To record interest on notes payable) 600 400 1,000 600 (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.) Cash Date Explanation Reference Debit 2008 Aug. 31 19,600 Accounts Receivable Date Explanation Reference Debit 2008 Aug. 31 Adj. entry J1 1,000 Supplies Date Explanation Reference Debit 2008 Aug. 31 3,300 31 Adj. entry J1 Prepaid Insurance Date Explanation Reference Debit 2008 Aug. 31 6,000 31 Adj. entry J1 Land Date Explanation Reference Debit 2008 Aug. 31 25,000 Cottages Date Explanation Reference Debit 2008 Aug. 31 125,000 Credit GENERAL LEDGER No. 101 Mortgage Payable Balance Date Explanation Reference Debit 2008 19,600 Aug. 31 Credit No. 112 Balance Credit No. 126 Balance 1,000 2,700 Credit 1,200 Credit 3,300 600 No. 130 Balance 6,000 4,800 No. 140 Balance 25,000 Credit No. 143 Balance 125,000 Accumulated Depreciation-Cottages Date Explanation Reference Debit Credit 2008 Aug. 31 Adj. entry J1 1,500 No. 144 Balance Furniture Date Explanation Reference Debit 2008 Aug. 31 26,000 No. 149 Balance Credit 26,000 Accumulated Depreciation-Furniture Date Explanation Reference Debit Credit 2008 Aug. 31 Adj. entry J1 600 Accounts Payable Date Explanation Reference Debit 2008 Aug. 31 Unearned Rent Date Explanation Reference Debit 2008 Aug. 31 31 Adj. entry J1 4,100 Salaries Payable Date Explanation Reference Debit 2008 Aug. 31 Adj. entry J1 Interest Payable Date Explanation Reference Debit 2008 Aug. 31 Adj. entry J1 1,500 Credit 6,500 Credit 7,400 Credit 400 Credit 600 No. 150 50 600 No. 140 Balance 6,500 No. 130 Balance 7,400 3,300 No. 212 Balance 400 No. 230 Balance 600 (c) Prepare an adjusted trial balance on August 31. NEOSHO RIVER RESORT, INC. Adjusted Trial Balance August 31, 2008 Account No. Debit 101 Cash $19,600 112 Accounts Receivable 1,000 126 Supplies 600 130 Prepaid Depreciation-Cottages 149 Furniture 26,000 150 Accumulated Insurance 4,800 140 Land 25,000 143 Cottages 125,000 144 Accumulated Depreciation-Furniture 201 Acounts Payable 208 Unearned Rent 212 Salaries Payable 230 Interest Payable 275 Mortgage Payable 311 Common Stock 320 Retained Earnings 332 Dividends 5,000 429 Rent Revenue 620 Depreciation Expense-Cottages 1,500 621 Depreciation Expense-Furniture 600 622 Repair Expense 3,600 631 Supplies Expense 2,700 718 Interest Expense 600 722 Insurance Expense 1,200 726 Salaries Expense 51,400 732 Utilities Expense 9,400 $278,000 Credit $1,500 600 6,500 3,300 400 600 80,000 100,000 85,100 $278,000 (d) Prepare an income statement and a retained earnings statement for the 3 months ending August 31 and a balance sheet as of August 31. NEOSHO RIVER RESORT, INC. Income Statement For the Month Ended August 31, 2008 Revenues Rent Revenue $85,100 Expenses Salaries Expense Utilities Expense Repair Expense Supplies Expense Depreciation Expense-Cottages Insurance Expense Depreciation Expense-Furniture Interest Expense Total Expenses Net Income $51,400 9,400 3,600 2,700 1,500 1,200 600 600 71,000 $14,100 NEOSHO RIVER RESORT, INC. Retained Earnings Statement For the Month Ended August 31, 2008 Retained Earnings, June 1 Add: Net Income 14,100 14,100 Less: Dividends 5,000 Retained earnings, August 31 $9,100 Common Stock Date Explanation Reference Debit 2008 Aug. 31 Retained Earnings Date Explanation Reference Debit 2008 Aug. 31 Date 2008 Aug. 31 Dividends Explanation Reference Debit Credit 80,000 Credit 100,000 Date 2008 Aug. 31 31 Adj. entry 31 Adj. entry 100,000 No. 320 Balance Credit No. 332 Balance Credit No. 429 Balance - 5,000 80,000 4,100 1,000 J1 J1 80,000 No. 311 Balance Credit 5,000 Rent Revenue Explanation Reference Debit No. 275 Balance 80,000 84,100 85,100 Depreciation Expense-Cottages Date Explanation Reference Debit Credit 2008 Aug. 31 Adj. entry J1 1,500 No. 620 Balance Depreciation Expense-Furniture Date Explanation Reference Debit Credit 2008 Aug. 31 Adj. entry J1 600 No. 621 Balance Repair Expense Date Explanation Reference Debit 2008 Aug. 31 3,600 Credit No. 622 Balance Credit No. 631 Balance Credit No. 718 Balance Credit No. 722 Balance Credit No. 722 Balance Supplies Expense Date Explanation Reference Debit 2008 Aug. 31 Adj. entry J1 2,700 Interest Expense Date Explanation Reference Debit 2008 Aug. 31 Adj. entry J1 600 Insurance Expense Date Explanation Reference Debit 2008 Aug. 31 Adj. entry J1 1,200 Salaries Expense Explanation Reference Debit Date 2008 Aug. 31 31 Adj. entry J1 600 3,600 2,700 600 1,200 51,000 400 Utilities Expense Date Explanation Reference Debit 2008 Aug. 31 9,400 1,500 51,000 51,400 Credit No. 732 Balance 9,400
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