Indigo Resort Opened For Business On June 1 With Eight Air Conditioned Units Its

INDIGO RESORT

TRIAL BALANCE

AUGUST 31, 2017

Debit

Credit

Cash$20,500Prepaid Insurance5,400Supplies3,500Land26,000Buildings126,000Equipment22,000Accounts Payable$5,400Unearned Rent Revenue5,500Mortgage Payable66,000Common Stock97,900Retained Earnings9,000Dividends5,000Rent Revenue82,200Salaries and Wages Expense44,800Utilities Expenses9,200Maintenance and Repairs Expense3,600Totals$266,000

$266,000

1.The balance in prepaid insurance is a one-year premium paid on June 1, 2017.2.An inventory count on August 31 shows $416 of supplies on hand.3.Annual depreciation rates are

(a) buildings (4%)

(b) equipment (10%).

Salvage value is estimated to be 10% of cost.4.Unearned Rent Revenue of $3,683 was earned prior to August 31.5.Salaries of $353 were unpaid at August 31.6.Rentals of $798 were due from tenants at August 31. (Use Accounts Receivable account.)7.The mortgage interest rate is 8% per year.

 

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