Prepare an adjusted trial balance on August 31 Question 1 Sh

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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.

Solution

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