Death Valley Resort opened for business on June 1 with eight air-co...

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Death Valley Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is presented here.
Trial Balance
August 31, 2012
                                              Debit         Credit
Cash                                  $ 24,600
Prepaid Insurance                   5,400
Supplies                                  4,300
Land                                       40,000
Buildings                              132,000
Equipment                            36,000
Accounts Payable                                  $ 6,500
Unearned Rent Revenue                         6,800
Mortgage Payable                                 120,000
Common Stock                                     100,000
Dividends                               5,000
Rent Revenue                                        80,000
Salaries and Wages Expense 53,000
Utilities Expense                      9,400
Maintenance and Repairs Expense
                                             $313,300   $313,300
Other data:
1. Insurance expires at the rate of $500 per month.
2. A count of supplies on August 31 shows $900 of supplies on hand.
3. Annual depreciation is $6,600 on buildings and $4,000 on equipment.
4. Unearned rent of $4,000 was earned prior to August 31.
5. Salaries of $600 were unpaid at August 31.
6. Rentals of $1,600 were due from tenants at August 31. (Use Accounts Receivable.)
7. The mortgage interest rate is 6% per year. (The mortgage was taken out August 1.)
(a) Journalize the adjusting entries on August 31 for the 3-month period June 1 August 31.
(b) Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting entries.
(c) Prepare an adjusted trial balance on August 31.
(d) Prepare an income statement and a retained earnings statement for the 3 months ended August 31 and a classified balance sheet as of August 31.
(e) Identify which accounts should be closed on August 31.

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