Date

GENERAL JOURNAL Account Titles and Explanation Adjusting Entries Aug. 31 Insurance Expenditure Insurance Prepayment (To record insurance expired: $400 per month) 31 Materials Expenditure Materials (To document materials used) 31 Wear and tear Expenditure Accumulated Wear and tear-Furnishings (To record monthly wear and tear) 31 Wear and tear Expenditure Accumulated Wear and tear-Bungalows (To document monthly wear and tear) 31 Unearned Rent Rent Revenue (To record revenue for rentals provided) 31 Accounts Receivable Rental Revenue (To record revenue for rentals provided) 31 Interest Expenditure Interest Payable (To document interest on loan) 31 Wages Expenditure Wages Payable (To record accrued wages)

Ref. 722 130

Debit 1,200.00

J2 Credit 3mo. Period = $1,200 1,200.00

631 126

2,700.00 2,700.00

3,300-600 = 2,700

621 150

600.00 600.00

26,000 total. 2400/12 = 200 * 3 = 600

620 144

1,500.00 1,500.00

125,000 total. 6000/12=500 * 3 = 1500

208 429

4,100.00 4,100.00

112 429

1,000.00 1,000.00

718 230

600.00 600.00

80,000 x 0.09 x 1/12 = 600 600

729 212

400.00 400.00

12,100.00 273,900.00 286,000.00 4,100.00

Cash Date Aug. 31 Explanation Ref. J1 Debit 19,600.00 Credit

GENERAL LEDGER No. 101 Balance Date 19,600.00 Aug. 31 No. 112 Balance 1,000.00 No. 126 Balance 3,300.00 600.00 No. 130 Balance 6,000.00 4,800.00 No. 140 Balance 25,000.00 No. 143 Balance 125,000.00 No. 144 Balance 1,500.00 No. 149 Balance 26,000.00 No. 150 Balance 600.00 No. 201 Balance 6,500.00 No. 208 Balance 7,400.00 3,300.00 No. 212 Balance 400.00 No. 230 Balance 600.00

Description

Mortgage Payable Ref. Debit J1 Common Stock Ref. Debit J1 Retained Earnings Ref. Debit

Credit 80,000.00

No. 275 Balance 80,000.00 No. 311 Balance 100,000.00 No. 320 Balance

Date Aug. 31

Explanation Adj. entry

Accounts Receivable Ref. Debit J2 1,000.00 Materials Ref. Debit J1 3,300.00 J2

Credit

Date Aug. 31

Description

Credit 100,000.00

Date Aug. 31 31

Explanation Adj. entry

Credit 2,700.00

Date 2008

Description

Credit

Date Aug. 31 31

Prepaid Insurance Explanation Ref. Debit J1 6,000.00 Adj. entry J2 Property Ref. Debit J1 25,000.00 Bungalows Ref. Debit J1 125,000.00

Credit 1,200.00

Date Aug. 31

Description

Dividends Ref. Debit J1 5,000.00 Rent Revenue Ref. Debit J1 J2 J2

Credit

No. 332 Balance 5,000.00 No. 429 Balance 80,000.00 84,100.00 85,100.00 No. 620 Balance 1,500.00 No. 621 Balance 600.00 No. 622 Balance 3,600.00 No. 631 Balance 2,700.00 No. 718 Balance 600.00 No. 722 Balance 1,200.00 No. 726 Balance 51,000.00 51,400.00 No. 732 Balance 9,400.00

Date Aug. 31

Explanation

Credit

Date Aug. 31 31 31

Description Adj. entry Adj. entry

Credit 80,000.00 4,100.00 1,000.00

Date Aug. 31

Explanation

Credit

Date Aug. 31

Wear and tear Expendsiture-Bungalows Explanation Ref. Debit Credit Adj. entry J2 1,500.00 Wear and tear Expenditure-Furnishings Explanation Ref. Debit Credit Adj. entry J2 600.00 Wear and tear Expenditure Explanation Ref. Debit J1 3,600.00 Materuials Expenditure Explanation Ref. Debit Adj. entry J2 2,700.00 Interest Expenditure Explanation Ref. Adj. entry J2 Insurance Expenditure Explanation Ref. Adj. entry J2 Wages Expenditure Explanation Ref. J1 Adj. entry J2 Amenities Expenditure Explanation Ref. J1

Date Aug. 31

Accumulated Wear and tear - Bungalows Explanation Ref. Debit Adj. entry J2 Furnishings Ref. Debit J1 26,000.00

Credit 1,500.00

Date Aug. 31

Date Aug. 31

Explanation

Credit

Date Aug. 31

Credit

Date Aug. 31

Accumulated Wear and tear - Furnishings Explanation Ref. Debit Adj. entry J2 Accounts Payable Ref. Debit J1 Unearned Rent Ref. Debit J1 J2 4,100.00 Wages Payable Ref. Debit J2 Interest Payable Ref. Debit J2

Credit 600.00

Date Aug. 31

Credit

Date Aug. 31

Explanation

Credit 6,500.00

Date Aug. 31

Debit 600.00

Credit

Date Aug. 31 31

Explanation Adj. entry

Credit 7,400.00

Date Aug. 31

Debit 1,200.00

Credit

Date Aug. 31

Explanation Adj. entry

Credit 400.00

Date Aug. 31 31

Debit 51,000.00 400.00

Credit

Date Aug. 31

Explanation Adj. entry

Credit 600.00

Date Aug. 31

Debit 9,400.00

Credit

Neosho River Resort, Inc. Adjusted Trial Balance August 31, 2008 Account Number 101 Cash 112 Accounts Receivable 126 Materials 130 Prepaid Insurance 140 Property 143 Bungalows 144 Accumulated Wear and tear - Bungalows 149 Furnishings 150 Accumulated Wear and tear - Furnishings 201 Accounts Payable 208 Unearned Revenue 212 Wages Payable 230 Interest Payable 275 Loan Payable 311 Usual Inventory 320 Saved Earnings 332 Payouts 429 Service Revenue 620 Wear and tear Expenditure - Bungalows 621 Wear and tear Expenditure - Furnishings 622 Repair Expenditure 631 Materials Expenditure 718 Interest Expenditure 722 Insurance Expense 726 Wages Expenditure 732 Amenities Expenditure Debit $19,600.00 1,000.00 600.00 4,800.00 25,000.00 125,000.00 26,000.00

5,000.00 1,500.00 600.00 3,600.00 2,700.00 600.00 1,200.00 51,400.00 9,400.00 $278,000.00

Credit

$1,500.00 600.00 6,500.00 3,300.00 400.00 600.00 80,000.00 100,000.00 85,100.00

$278,000.00

Neosho River Resort, Inc. Income Statement For the month ended August 31, 2008 Revenues Service revenue Expenditures Wages expenditure Advertising materials expenditure Repair Expenditure Interest Expenditure Insurance Expenditure Amenities Expenditure Wear and tear expenditure Total expenditures Net income

51,400.00 2,700.00 3,600.00 600.00 1,200.00 9,400.00 2,100.00

85,100.00

71,000.00 $14,100.00

Neosho River Resort, Inc. Retained Earnings Statement For the month ended August 31, 2008 Retained Earnings, June 1 Add: Net Income $$14,100.00 $14,100.00 $5,000.00 $9,100.00

Less: Payouts Retained earnings, August 31

Neosho River Resort, Inc. Balance Sheet August 31, 2008 Account Cash Accounts Receivables Materials Prepaid Insurance Property Bungalows Less: Acc. Wear and tear Bungalows Furnishings Less: Acc. Wear and tear Furnishings Total Assets Debit

25,000.00 125,000.00 $1,500.00 26,000.00 600.00

Debts and Stockholder's Equity Debts Accounts Payable Unearned Revenue Loan Payable Wages Payable Interest Payable Total Debts Stockholder's Equity Usual Inventory Saved Earnings Total Debts and Stockholder's Equity

Credit $19,600.00 1,000.00 600.00 4,800.00

148,500.00 25,400.00 $199,900.00

6,500.00 3,300.00 80,000.00 400.00 600.00 90,800.00 100,000.00 9,100.00 199,900.00