Chapter 3: E3-10 [Adjustment entry, Adjusted Trial Balance, Closing Entry, Post

closing Trial balance]

Uhura Resort
Adjusting Entries
Dr.
Date. Accounts Title and Explanation Ref Cr. (Tk.)
(Tk.)
August Insurance Expense Dr $1,125
31 Prepaid Insurance . $1,125
(4,500/12)X 3 Cr
.
August Supplies Expense Dr 1,950
31 Supplies . 1,950
(2,600-650) Cr.
August Depreciation Expense Dr 1,080
31 Accumulated depreciation-Building . 1,080
[(120,000-12,000)X 4%]X3/12 Cr
.
August Depreciation Expense Dr 360
31 Accumulated depreciation-Equipment . 360
[(16,000-1,600)X10%]X3/12 Cr
.
August Unearned Rent Revenue Dr 3,800
31 Rent Revenue . 3,800
Cr.
August Salaries and Wages expense Dr 375
31 Salaries and Wages payable . 375
Cr.
August Accounts Receivable Dr 800
31 Rent Revenue . 800
Cr.
August Interest Expense Dr 1,000
31 Interest Payable . 1,000
[50,000X8%]X3/12 Cr.

Uhura Resort
Adjusting Trial Balance
August 31. 2019
Accounts Title Debit Credit
Cash $19,600
Prepaid Insurance [4,500-1,125] 3,375
Supplies [2,600-1950] 650
Land 20,000
Building 120,000
Equipment 16,000
Accounts Payable $4,500
Unearned Rent Revenue [4,600-3,800] 800
Mortgage Payable 50,000
Share Capital: Ordinary 100,000
Retained Earnings 0
Dividends 5,000
Rent Revenue [86,200+3,800+800] 90,800
Salaries and Wages expense [44,800+375] 45,175
Utilities expense 9,200
Maintenance expense 3,600
Insurance Expense 1,125
Supplies Expense 1,950
Depreciation Expense 1,080
Accumulated depreciation-Building 1,080
Depreciation Expense 360
Accumulated depreciation-Equipment 360
Salaries and Wages payable 375
Accounts Receivable 800
Interest Expense 1,000
Interest Payable 1,000
Total $248,815 $248,815

CLOSING ENTRY
Dr.
Date. Accounts Title and Explanation Ref Cr. (Tk.)
(Tk.)
August Rent Revenue Dr $90,800
31 Income Summary . $90,800
[To close revenue account] Cr
.
August Income Summary Dr 63,490
31 Salary and Wages expense . 45,175
Utilities expense Cr 9,200
Maintenance expense Cr 3,600
Insurance expense Cr 1,125
Supplies expense Cr 1,950
Depreciation expense-Building Cr. 1,080
Depreciation expense-Equipment Cr 360
Interest expense Cr 1,000
[To close all expense account] Cr
August Income Summary Dr 27,310
31 Retained Earnings . 27,310
[To transfer net income to retained Cr
earnings] .
August Retained Earnings Dr 5,000
31 Dividends . 5,000
[To close dividends to retained Cr
earnings] .

Uhura Resort
Post closing Trial Balance [All permanent Accounts]
August 31. 2019
Accounts Title Debit Credit
 Cash $19,600
Prepaid Insurance 3,375
Supplies 650
Land 20,000
Building 120,000
Equipment 16,000
Accounts Receivable 800
Accounts Payable $4,500
Unearned Rent Revenue 800
Mortgage Payable 50,000
Share Capital: Ordinary 100,000
Retained Earnings [27,310-5,000] 22,310
Accumulated depreciation-Building 1,080
Accumulated depreciation-Equipment 360
Salaries and Wages payable 375
Interest Payable 1,000

Total $180,425 $180,425

All permanent Accounts means Assets, Liabilities and Shareholder’s equity. Don’t
show any income statement items here.