In addition to those accounts listed on the trial balance, the chart of accounts for Neosho River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation-Cottages, No. 150 Accumulated Depreciation-Furniture, No. 212 Salaries Payable, No. 230 Interest Payable, No. 620 Depreciation Expense-Cottages, No. 621 Depreciation Expense-Furniture, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

Insurance expires at the rate of $400 per month.

A count on August 31 shows $600 of supplies on hand.

Annual depreciation is $6,000 on cottages and $2,400 on furniture.

Unearned rent of $4,100 was earned prior to August 31.

Salaries of $400 were unpaid at August 31.

Rentals of $1,000 were due from tenants at August 31. (Use Accounts Receivable.)

The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.)


(a) Journalize the adjusting entries on August 31 for the 3-month period June 1’August 31.

(b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.) (If an amount should be blank, enter a zero. All boxes must be filled to be correct.)