(Adjusting Entries) Greco Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. Other data:

1. The balance in prepaid insurance is a one-year premium paid on June 1, 2005.
2. An inventory count on August 31 shows $450 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.
(a) Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31.
(b) Prepare an adjusted trial balance on August31.