Acc – uhura resort | Accounting homework help

 

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

 

UHURA RESORT TRIAL BALANCE AUGUST 31, 2012
		Debit		Credit
Cash		$23,390
Prepaid Insurance		8,290
Supplies		6,390
Land		24,000
Buildings		124,000
Equipment		20,000
Accounts Payable				$8,290
Unearned Rent Revenue				8,390
Mortgage Payable				54,000
Common Stock				107,790
Dividends		5,000
Rent Revenue				90,200
Salaries and Wages Expense		44,800
Utilities Expenses		9,200
Maintenance and Repairs Expense		3,600
		$268,670		$268,670

 

Other data:
1.  The balance in prepaid insurance is a one-year premium paid on June 1, 2012.
2.  An inventory count on August 31 shows $713 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 $4,139 was earned prior to August 31.
5.  Salaries of $389 were unpaid at August 31.
6.  Rentals of $820 were due from tenants at August 31.
7.  The mortgage interest rate is 8% per year.