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Homework answers / question archive / After retiring from working in the high-tech industry, Albert Forges borrowed $79,000 and started a cottage rental business on June 1, 2021

After retiring from working in the high-tech industry, Albert Forges borrowed $79,000 and started a cottage rental business on June 1, 2021

Accounting

After retiring from working in the high-tech industry, Albert Forges borrowed $79,000 and started a cottage rental business on June 1, 2021. The trial balance for Martinez Cottages on August 31, 2021 is as follows:

 

Martinez Cottages

Unadjusted Trial Balance

August 31, 2021

Debit Credit

Cash $5,200

Prepaid Insurance 3,800

Supplies 1,500

Land 22,000

Buildings 145,000

Furniture 17,000

Accounts Payable $4,500

Unearned Revenue 4,900

Notes Payable 79,000

A. Forges, Capital 87,000

A. Forges, Drawings 5,000

Rent Revenue 85,100

Salaries Expense 48,000

Utilities Expense 9,500

Repairs Expense 3,500

$260,500 $260,500

 

Other data:

 

1.The balance in Prepaid Insurance is a one-year premium paid on June 1, 2021.2.A count on August 31 shows $500 of supplies on hand.3.Annual depreciation for buildings is based on a 25-year useful life.4.Annual depreciation for furniture based on a 10-year useful life.5.Unearned Revenue of $3,500 for rent was earned prior to August 31.6.Salaries of $410 were unpaid at August 31.7.Rent revenue of $850 were due from tenants at August 31. (Use Accounts Receivable.)8.The note payable interest rate is 6% per year.

Journalize the adjusting entries on August 31 for the three-month period June 1 to August 31. (Round answers to 0 decimal places, e.g. 152. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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