Ch1-5 Review Exercise Solutions

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Adjusting entries Insurance expense 900 Prepaid insurance 900 supplies expense 2400 supplies 2400 Depreciation expense 1800 Acc depreciation cottage 1200 Acc depreciation furniture 600 unearned rent revenue 5000 rent revenue 5000 salary expense 400 salary payable 400 Accounts receivable 800 rent revenue 800 Interest expense 800 Interest payable 800
Lindsey's Resort Lindsey's Resort Trial Balance POSTING AJE Adjusted Trial Balance 8/31/202x 8/31/202x DR CR DR CR DR CR cash $ 19,600 $ 19,600 Rent receivable $ 800 $ 800 Prepaid Insurance $ 5,400 $ 900 $ 4,500 Supplies $ 3,300 $ 2,400 $ 900 Land $ 25,000 $ 25,000 Cottages $ 125,000 $ 125,000 Acc depr cottage $ 1,200 $ 1,200 Furniture $ 26,000 $ 26,000 Acc depr furniture $ 600 $ 600 A/P $ 6,500 $ 6,500 salary payable $ 400 $ 400 Interest payable $ 800 $ 800 Unearned revenue $ 6,800 $ 5,000 $ 1,800 Mortgage payable $ 80,000 $ 80,000 common stock $ 100,000 $ 100,000 dividends $ 5,000 $ 5,000 rent revenue $ 80,000 $ 5,800 $ 85,800 salary expense $ 51,000 $ 400 $ 51,400 utilities expense $ 9,400 $ 9,400 repair expense $ 3,600 $ 3,600 insurance expense $ 900 $ 900 supplies expense $ 2,400 $ 2,400 depreciation expense $ 1,800 $ 1,800 interest expense $ 800 $ 800 $ 273,300 $ 273,300 $ 12,100 $ 12,100 $ 277,100 $ 277,100
Lindsey's Resort Income Statement for the period ending 8/31/202x Rent revenue $ 85,800 Less operating expenses: salary $ 51,400 utilities $ 9,400 repair $ 3,600 insurance $ 900 supplies $ 2,400 depreciation $ 1,800 Total operating expense $ 69,500 operating Income $ 16,300 Other revenues (gains), other expenses (losses) interest expense $ 800 Net Income $ 15,500
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