Neosho River Resort, Inc. opened for business on June
1 with eight air-conditioned units. Its trial balance before adjustment on
August 31 is as follows. NEOSHO RIVER RESORT, INC. Trial Balance August 31,
2008 Account Number Debit Credit 101 Cash $ 19,600 126 Supplies 3,300 130
Prepaid Insurance 6,000 140 Land 25,000 143 Cottages 125,000 149 Furniture
26,000 201 Accounts Payable $ 6,500 208 Unearned Rent 7,400 275 Mortgage
Payable 80,000 311 Common Stock 100,000 332 Dividends 5,000 429 Rent Revenue
80,000 622 Repair Expense 3,600 726 Salaries 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 Neosho River Resort also contains the
following accounts and account numbers: No. 112 Accounts Receivable, No. 144
Accumulated Depreciation—Cottages, No. 150 Accumulated Depreciation—Furniture,
No. 212 Salaries Payable,No. 230 Interest Payable,No. 320 Retained Earnings,No.
620 Depreciation Expense—Cottages, No. 621 Depreciation Expense—Furniture, No.
631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.
Other data: 1. Insurance expires at the rate of $400 per month. 2. A count on
August 31 shows $600 of supplies on hand. 3. Annual depreciation is $6,000 on
cottages and $2,400 on furniture. 4. Unearned rent of $4,100 was earned prior
to August 31. 5. Salaries of $400 were unpaid at August 31. 6. Rentals of
$1,000 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 a retained earnings
statement for the 3 months ending August 31 and a balance sheet as of August 31
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