E3.10 (LO 3) (Adjusting Entries) Greco Resort opened for business on June 1 with eight air- conditioned units. Its trial balance on August 31 is as follows. Greco Resort Trial Balance August 31, 2020 Debit Credit Cash $ 19,600 Prepaid Insurance Supplies 4,500 2,600 Land 20,000 Buildings Equipment Accounts Payable 120,000 16,000 $ 4,500
E3.10 (LO 3) (Adjusting Entries) Greco Resort opened for business on June 1 with eight air- conditioned units. Its trial balance on August 31 is as follows. Greco Resort Trial Balance August 31, 2020 Debit Credit Cash $ 19,600 Prepaid Insurance Supplies 4,500 2,600 Land 20,000 Buildings Equipment Accounts Payable 120,000 16,000 $ 4,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
3.10
Transcribed Image Text:E3.10 (LO 3) (Adjusting Entries) Greco Resort opened for business on June 1 with eight air-
conditioned units. Its trial balance on August 31 is as follows.
Greco Resort
Trial Balance
August 31, 2020
Debit
Credit
Cash
$ 19,600
Prepaid Insurance
Supplies
4,500
2,600
Land
20,000
Buildings
Equipment
Accounts Payable
120,000
16,000
$ 4,500
Transcribed Image Text:My Messages
Other data:
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020.
2. An inventory count on August 31 shows $450 of supplies on hand.
3. Annual depreciation rates are buildings (4%) and equipment (10%). Salvage value is estimated to b
10% of cost.
4. Unearned Rent Revenue of $3,800 was earned prior to August 31.
5. Salaries of $375 were unpaid at August 31.
6. Rentals of $800 were due from tenants at August 31.
7. The mortgage interest rate is 8% per year.
Instructions
a. Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31. (Om
explanations.)
b. Prepare an adjusted trial balance on August 31.
Exercis
(Prepare Financial Statements)
er 31, 2020, contains the following.
The adjusted trial balance of Anderson Cooper Co.
Anderson Cooper Co.
Adjusted Trial Balance
December 31, 2020
Dr.
Cr.
Cash
$19 472
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