MELTON RIVER RESORT Trial Balance August 31, 2012

Melton River Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows.


Trial Balance
August 31, 2012
Account Number DebitCredit
101Cash$ 19,600 
130Prepaid Insurance6,000 
201Accounts Payable $ 6,500
208Unearned Rent Revenue 7,400
275Mortgage Payable 80,000
301Owner's Capital 100,000
306Owner's Drawings5,000 
429Rent Revenue 80,000
622Maintenance and Repairs Expense3,600 
726Salaries and Wages Expense51,000 
732Utilities Expense9,400 

In addition to those accounts listed on the trial balance, the chart of accounts for Melton River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 620 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. 

Other data:

1.   Insurance expires at the rate of $300 per month.
2.   A count on August 31 shows $800 of supplies on hand.
3.   Annual depreciation is $6,000 on buildings and $2,400 on equipment.
4.   Unearned rent revenue of $4,800 was earned prior to August 31.
5.   Salaries of $400 were unpaid at August 31.
6.   Rentals of $4,000 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.)



(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.

(c) Adj. trial balance $281,000

(d)  Prepare an income statement and an owner's equity statement for the 3 months ending August 31 and a balance sheet as of August 31.

(d) Net income $18,300

 Ending capital balance $113,300

 Total assets $203,400

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    MELTON RIVER RESORT Trial Balance August 31, 2012

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