MELTON RIVER RESORT Trial Balance August 31, 2012

Melton River Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows.

MELTON RIVER RESORT
Trial Balance
August 31, 2012
Account Number		Debit	Credit
101	Cash	$ 19,600
126	Supplies	3,300
130	Prepaid Insurance	6,000
140	Land	25,000
143	Buildings	125,000
149	Equipment	26,000
201	Accounts Payable		$ 6,500
208	Unearned Rent Revenue		7,400
275	Mortgage Payable		80,000
301	Owner's Capital		100,000
306	Owner's Drawings	5,000
429	Rent Revenue		80,000
622	Maintenance and Repairs Expense	3,600
726	Salaries and Wages Expense	51,000
732	Utilities Expense	9,400
		$273,900	$273,900

In addition to those accounts listed on the trial balance, the chart of accounts for Melton River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 620 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

1.	Insurance expires at the rate of $300 per month.
2.	A count on August 31 shows $800 of supplies on hand.
3.	Annual depreciation is $6,000 on buildings and $2,400 on equipment.
4.	Unearned rent revenue of $4,800 was earned prior to August 31.
5.	Salaries of $400 were unpaid at August 31.
6.	Rentals of $4,000 were due from tenants at August 31. (Use Accounts Receivable.)
7.	The mortgage interest rate is 9% per year. (The mortgage was taken out on 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 the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.)

(c)

Prepare an adjusted trial balance on August 31.

(d)

Prepare an income statement and an owner's equity statement for the 3 months ending August 31 and a balance sheet as of August 31.

(d) Net income $18,300

Ending capital balance $113,300

Total assets $203,400

9 years ago

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MELTON RIVER RESORT Trial Balance August 31, 2012

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