Uhura Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows (in thousands).
| UHURA RESORT TRIAL BALANCE AUGUST 31, 2015 |
| |
Debit |
Credit |
| Cash |
¥ 19,600 |
|
|
| Prepaid Insurance |
4,500 |
|
| Supplies |
2,600 |
|
| Land |
20,000 |
|
Buildings
|
120,000 |
|
Equipment
|
16,000 |
|
| Accounts Payable |
|
¥ 4,500 |
| Unearned Rent Revenue |
|
4,600 |
| Mortgage Payable |
|
50,000 |
| Share Capital-Ordinary |
|
100,000 |
| Retained Earnings |
|
0 |
| Dividends |
5,000 |
|
| Rent Revenue |
|
86,200 |
Salaries and Wages Expense
|
44,800 |
|
| Utilities Expense |
9,200 |
|
| Maintenance and Repair Expense |
3,600 |
|
Totals
|
¥245,300 |
¥245,300 |
Other data:
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2015.
2. An inventory count on August 31 shows ¥650 of supplies on hand.
3. Annual depreciation rates are buildings (4%) and equipment (10%). Residual value is estimated to be 10% of cost.
4. Unearned rent revenue of ¥3,800 was earned prior to August 31.
5. Salaries and wages of ¥375 were unpaid at August 31.
6. Rentals of ¥800 were due from tenants at August 31.
7. The mortgage note is dated 1/1/2015. 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.