Question

Vizquel Resort opened for business on June 1. It has already recorded and posted its regular transactional entries from June 1st through August 31st, leading to the balances reported below in its August 31st trial balance. Now it is time for them to record their adjusting entries. (Amounts in 000's.) VIZQUEL RESORT TRIAL BALANCE AUGUST 31, 20xx Credit Debit $ 1,960 440 260 2,000 12,000 1,600 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 Expense Maintenance and Repairs Expense $ 450 460 6,000 9,100 890 500 7,620 4.480 920 360 $ 24,520 $ 24,520

Answer 1

Adjusting entries

Date	accounts and explaination	debit	credit
Aug 31	insurance expenses	110
	Prepaid Insurance		110
	Insurance expired)
Aug 31	Supplies expenses	215
	Supplies account		215
	( Supplies utilised)
Aug 31	Depreciation expenses- building	300
	Accumulated depreciation- building		300
	(Depreciation charged bon building)
Aug 31	Depreciation expenses- equipment	60
	Accumulated equipment		60
	(Depreciation charged bon equipment)
Aug 31	Unearned rent revenue	380
	Rent revenue		380
	(Unearned rent revenue earned)
Aug 31	Salaries and wages Expenses	38
	Salaries and wages payable		38
	( Salaries unpaid)
Aug 31	Account Recievable	400
	Rent revenue		400
	( Rent due)
Aug 31	Interest expenses	90
	interest payable		90
	(Interest due for 3 months )

T accounts

Insurance expenses

Aug 31

110

Prepaid Insurance

Bal	440	aug 31	110
Bal	330

Supplies expenses

Aug 31

215

Supplies

Bal	260	aug 31	215
Bal	45

Depreciation expense--building

Aug 31

300

Accumulated depreciation- building

Aug 31

300

Depreciation expense- equipment

Aug 31

60

Accumulated depreciation-equipment

Aug 31

60

Unearned rent revenue

Aug 31	380	Bal	460
		Bal	80

Rent revenue

		Bal	7,620
		Aug 31	380
		Aug 31	400
		Bal	8,400

Salaries and wages Expenses

Bal	4,480
Aug 31	38
Bal	4,518

Salaries and wages payable

Aug 31

38

Account Recievable

Aug 31

400

Interest expense

Aug 31

90

Interest payable

Aug 31

90

VIZQUEL RESORT

Adjusted Trail balance

AUGUST 31

Accounts	debit	credit
Cash	1,960
Prepaid Insurance	330
Supplies	45
Account Recievable	400
Land	2,000
Buildings	12,000
Equipment	1,600
Account payable		450
Unearned rent revenue		80
Interest payable		90
Mortgage payable		6,000
Salaries and wages payable		38
Common stock		9,100
Retained earnings		890
Dividends	500
Rent revenue		8,400
Salaries and wages Expenses	4,518
Utilities exepnses	920
Maintenance and repair Expenses	360
Insurance expenses	110
Supplies expenses	215
Interest expense	90
Depreciation expense- building	300
Depreciation expense- equipment	60
Accumulated depreciation- building		300
Accumulated depreciation- equipment		60
Total	25,408	25,408

Working notes

Insurance expenses= 440×3/12 =110

Supplies expenses= 260-45= 215

Depreciation expense- building (10%per year)

=12000×10%=1200×3months/12 months=300

Depreciation expense- equipment (15% per year)

= 1600×6%=240 × 3months/12 months=60

Interest on mortgage= 6,000× 6%=360= 360× 3 months/12 months= 90