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 | ||||
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.