Uhura Resort opened for business on June 1 with eight airconditioned units. Its trial balance on August 31 is as follows (in thousands).
Other data:
1. The balance in prepaid insurance is a 1-year premium paid on June 1, 2022.
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 should be recognized as revenue 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 1/1/2022. 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. (Omit explanations.)
b. Prepare an adjusted trial balance on August 31.
