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Prepare adjusted trial balance

E3-10 (adjusting entries) Uhura resort opened for business on June 1 with eight air-conditioned units. Its trial balance on august 31 as follows.

UHURA RESORT
Trial Balance
August 31, 2010

Debit Credit
Cash $19,600
Prepaid insurance 4,500
Supplies 2,600
Land 20,000
Cottage 120,000
Furniture 16,000
Accounts payable $4,500
Unearned rent 4,600
Mortgage payable 50,000
Common stock 91,000
Retained earnings 9,000
Dividends 5,000
Rent revenue 86,200
Salaries expense 44,800
Utilities expense 9,200
Repair expense 3,600
$245,300 $245,300

Other Data:
1. The balance in prepaid insurance is a one year premium paid on June 1, 2010.
2. An inventory count on August 31 shows $650 of supplies on hand.
3. Annual depreciation rates are cottages (4%) and furniture (10%). Salvage value is estimated to be 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 months period June 1 - August 31. (omit explanation)
(b) Prepare an adjusting trial balance on August 31

$2.19