Neosho River Resort, Inc. opened for business on June 1 with eight air-conditioned units.

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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Problem 2-4A Preparing and posting journal entries; preparing a trial balance L.O. C3, C4, A1, P1, P2 Santo Birch opens a Web consulting business called Show-Me-the-Money and completes the following transactions in its first month of operations.

Problem 2-4A Preparing and posting journal entries; preparing a trial balance L.O. C3, C4, A1, P1, P2

Santo Birch opens a Web consulting business called Show-Me-the-Money and completes the following transactions in its first month of operations.

March 1	Birch invests $150,000 cash along with office equipment valued at $22,000 in the company in exchange for common stock.
2	The company prepaid $6,000 cash for twelve months' rent for office space. (Hint: Debit Prepaid Rent for $6,000.)
3	The company made credit purchases for $3,000 in office equipment and $1,200 in office supplies. Payment is due within 10 days.
6	The company completed services for a client and immediately received $4,000 cash.
9	The company completed a $7,500 project for a client, who must pay within 30 days.
13	The company paid $4,200 cash to settle the account payable created on March 3.
19	The company paid $5,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $5,000.)
22	The company received $3,500 cash as partial payment for the work completed on March 9.
25	The company completed work for another client for $3,820 on credit.
29	The company paid $5,100 cash for dividends.
30	The company purchased $600 of additional office supplies on credit.
31	The company paid $200 cash for this month's utility bill.

  

Required:
1.	Record these transactions using the following titles: Cash, Accounts Receivable, Office Supplies, Prepaid Insurance, Prepaid Rent, Office Equipment, Accounts Payable, Common Stock, Dividends, Services Revenue, and Utilities Expense. (Omit the "$" sign in your response.)

  

Date	General Journal	Debit	Credit
March 1	Cash
	Office equipment
	Common stock		172,000
2	Prepaid rent	6,000
	Cash		6,000
3	Office equipment
	Office supplies
	Accounts payable		4,200
6	Cash	4,000
	Services revenue		4,000
9	Accounts receivable	7,500
	Services revenue		7,500
13	Accounts payable	4,200
	Cash		4,200
19	Prepaid insurance	5,000
	Cash		5,000
22	Cash	3,500
	Accounts receivable		3,500
25	Accounts receivable	3,820
	Services revenue		3,820
29	Dividends	5,100
	Cash		5,100
30	Office supplies	600
	Accounts payable		600
31	Utilities expense	200
	Cash		200

  

2.

Open the ledger accounts for the account titles referred in part 1 and post the journal entries from part 1 to the ledger accounts and enter the balance after each posting. (Record the transactions in given order.Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)

  

Cash
Date			Debit			Credit		Balance
March	1		150,000			0		150,000
	2		0			6,000		144,000
	6		4,000			0		148,000
	13		0			4,200		143,800
	19		0			5,000		138,800
	22		3,500			0		142,300
	29		0			5,100		137,200
	31		0			200		137,000

  

Accounts Receivable
Date			Debit			Credit		Balance
March	9		7,500			0		7,500
	22		0			3,500		4,000
	25		3,820			0		7,820

    

Office Supplies
Date			Debit			Credit		Balance
March	3		1,200			0		1,200
	30		600			0		1,800

  

Prepaid Insurance
Date			Debit			Credit		Balance
March	19		5,000			0		5,000

  

Prepaid Rent
Date			Debit			Credit		Balance
March	2		6,000			0		6,000

  

Office Equipment
Date			Debit			Credit		Balance
March	1		22,000			0		22,000
	3		3,000			0		25,000

  

Accounts Payable
Date			Debit			Credit		Balance
March	3		0			4,200		4,200
	13		4,200			0		0
	30		0			600		600

  

Common Stock
Date			Debit			Credit		Balance
March	1		0			172,000		172,000

  

Dividends
Date			Debit			Credit		Balance
March	29		5,100			0		5,100

  

Services Revenue
Date			Debit			Credit		Balance
March	6		0			4,000		4,000
	9		0			7,500		11,500
	25		0			3,820		15,320

  

Utilities Expense
Date			Debit			Credit		Balance
March	31		200			0		200

  

3.	Prepare a trial balance as of April 30. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities, Equity, Revenues, and Expenses. Omit the "$" sign in your response.)

  

SHOW-ME-THE-MONEY CONSULTANTS Trial Balance March 31
	Debit	Credit
Cash	$ 137,000
Accounts receivable	7,820
Office supplies
Prepaid insurance
Prepaid rent
Office equipment
Accounts payable		$ 600
Common stock		172,000
Dividends	5,100
Services revenue		15,320
Utilities expense	200
Totals	$ 187,920	$ 187,920