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Posted by: Homeworkhelp
Price Quoted by Student: $9
Posted On: 2010-09-02 01:01:32

ACC 280 P3-2A Neosho River Resort, Inc. opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows.


ACC 280 P3-2A Neosho River Resort, Inc.


Axia College of University of Phoenix (UoP)


Principles of Accounting

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.

P3-2A Neosho River Resort, Inc. opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows.


Trial Balance

August 31, 2008

Account Number                     Debit                Credit

101      Cash                            19,600

126      Supplies                       3,300

130      Prepaid Insurance        6,000

140      Land                            25,000

143      Cottages                       125,000

149      Furniture                      26,000

201      Accounts Payable                                $ 6,500           

208      Unearned Rent                                     7,400

275      Mortgage Payable                                80,000

311      Common Stock                                                100,000

332      Dividends                    5,000

429      Rent Revenue                                      80,000

622      Repair Expense                        3,600

726      Salaries Expense          51,000

732      Utilities Expense          9,400

                                                $273,900         $273,900

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. 320 Retained Earnings. 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:

1. Insurance expires at the rate of $400 per month.

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

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

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

5. Salaries of $400 were unpaid at August 31.

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

7. 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.)

(c) Prepare an adjusted trial balance on August 31.

(d) Prepare an income statement and a retained earnings statement for the 3 months ending August 31 and a balance sheet as of August 31.

Please see the Excel attachment
Price $9
Attachment 1: Neosho River Resort, Inc.xls
Solution Posted By: Homeworkhelp    Posted on: 02-09-2010