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Problem 2 adjusting journal entries restful resort

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Problem 2:Adjusting Journal EntriesRestful Resort, Inc. opened for business on June 1 with eight air-conditioned units.Its unadjusted trial balance on August 31is as follows:Restful Resort, Inc.Unadjusted Trial BalanceAugust 31, 20X1DebitCreditCash$19,600Prepaid insurance4,500Supplies2,600Land20,000Buildings120,000Equipment16,000Accounts payable$4,200Unearned rent revenue4,900Mortgage payable60,000Common stock100,000Retained earnings0Dividends5,000Rent revenue76,200Salaries and wages expense44,800Utilities expense9,200Maintenance and repairs expense3,600________$245,300$245,300Using the additional data presented below, prepare the adjusting entries for August 31for the 3-month period June 1- August31.1.The balance in the prepaid insurance is from a payment made on June 1 for a one-year insurance policy.
2.A count of supplies on August 31 shows $450 of supplies on hand.
3.The equipment has an estimated salvage value of $1,600 and a useful life of 10 years.The buildings have an estimatedsalvage value of $12,000 and a useful life of 25 years.DateAccountsDebitCreditA100 Final Exam Review7
DateAccountsDebitCredit4.Unearned rent revenue of $3,800 has now been earned.
5.Salaries of $375 were unpaid at August 31.
6.Rentals of $800 were due from tenants at August 31.
7.The mortgage originated on June 1.The note has an interest rate of 8% per year.No interest or principle paymentshave been made on the note to date.DateAccountsDebitCreditA100 Final Exam Review8
Problem 3:Financial StatementsHillcrest Campgrounds, Inc. rents out campsites in a wooded park.The adjusted trial balance for HillcrestCampgrounds on March 31, 20X2, the end of the current fiscal year, follows:Hillcrest Campgrounds, Inc.Adjusted Trial BalanceMarch 31, 20X2DebitCreditCash$2,040Accounts Receivable3,660Supplies114Prepaid Insurance594Land15,000Building45,900Accumulated Depreciation, Building$10,500Accounts Payable1,725Income Tax Payable3,500Wages Payable825Common Stock30,000Retained earnings, 4/1/X116,535Dividends18,000Campsite Rental Revenue44,100Wages Expense11,925Income Tax Expense3,500Insurance Expense1,892Utilities Expense900Supplies Expense660Depreciation Expense:Buildings3,000Totals$107,185$107,185Required:Prepare the income statement, retained earnings statement and classified balance sheet for HillcrestCampgrounds, Inc. for the year ended March 31, 20X2.

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Term
Fall
Professor
HOSEA LOBORA
Tags
Generally Accepted Accounting Principles

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