Unadjusted TB Adjustments

Account titles Debit Credit Debit Credit

Cash 3,400
Supplies 2,080 1,330
Prepaid Insurance 2,400 200
Land 12,000
Buildings 60,000
Accumulated Depreciation-Buildings 300
Equipment 14,000
Accumulated Depreciation-Equipment 125
Accounts Payable 4,700
Unearned Rent Revenue 3,300 2,200
Salaries and Wages Payable 750
Interest Payable 200
Mortgage Payable 40,000
Share Capital—Ordinary 41,380
Dividends 1,000
RETAINED EARNINGS
INCOME SUMMARY

Rent Revenue 10,300 2,200

Advertising Expense 600
Depreciation Expense 425
Supplies Expense 1,330
Interest Expense 200
Insurance Expense 200
Salaries and Wages Expense 3,300 750
Utilities Expense 900
SUB TOTAL 99,680 99,680 5,105 5,105
NET INCOME
FINAL TOTAL
1. Dr Insurance Expense 200
Cr Prepaid Insurance 200
2. Dr Supplies Expense 1,330
Cr Supplies 1,330
3. Dr Depreciation Expense 425
Cr Accumulated Depreciation-Buildings 300
Cr Accumulated Depreciation-Equipment 125
4. Dr Interest Expense 200
 Cr Interest Payable 200
5. Dr Unearned Rent Revenue 2,200
Cr Rent Revenue 2,200
6. Dr Salaries and Wages Expense 750
Cr Salaries and Wages Payable 750
 Adjusted TB Income statement BS and Stmt Of Owner’s Equity
Debit Credit Debit Credit Debit Credit
3,400 3,400
750 750
2,200 2,200
12,000 12,000
60,000 60,000
300 300
14,000 14,000
125 125
4,700 4,700
1,100 1,100
750 750
200 200
40,000 40,000
41,380 41,380
1,000 1,000

12,500 12,500
600 600
425 425
1,330 1,330
200 200
200 200
4,050 4,050
900 900
101,055 101,055 7,705 12,500 93,350 88,555
4,795 4,795
12,500 12,500 93,350 93,350
 Closing entries Post-closing TB = Adjuste
Debit Credit Debit Credit
3,400 CLOSING ENTRIES:
750 1/ TO CLOSE REVENUES:
2,200 Dr Rent Revenue
12,000 Cr Income Summary
60,000
300 2/ TO CLOSE EXPENSES:
14,000 Dr Income Summary
125 Cr Advertising Expense
4,700 Cr Depreciation Expense
1,100 Cr Supplies Expense
750 Cr Interest Expense
200 Cr Insurance Expense
40,000 Cr Salaries and Wages Expense
41,380 Cr Utilities Expense
1,000 -
1,000 4,795 3,795 3/ TO CLOSE INCOME SUMMARY TO RETAINED E
7,705 12,500 - Dr Income Summary
4,795 Cr Retained Earnings
12,500 -
600 - 4/ TO CLOSE DIVIDENDS TO RETAINED EARNING
425 - Dr Retained Earnings 1,000
1,330 - Cr Dividends 1,000
200 -
200 -
4,050 -
900 -
26,000 26,000 92,350 92,350
 12,500
12,500

7,705
600
on Expense 425
1,330
200
200
d Wages Expense 4,050
900

MARY TO RETAINED EARNINGS:

4,795
4,795

O RETAINED EARNINGS:
 LAZY RIVER RESORT
INCOME STATEMENTS
FOR THE PERIOD ENDED MAY 31ST 2020
Rent Revenue 12,500
Advertising Expense 600
Depreciation Expense 425
Supplies Expense 1330
Interest Expense 200
Insurance Expense 200
Salaries and Wages Expense 4050
Utilities Expense 900 7,705
Net income 4,795

LAZY RIVER RESORT

RETAINED EARNINGS STATEMENT
FOR THE PERIOD ENDED MAY 31ST 2020
Retained earning, opening balance -
Plus: Net income 4,795
Minus: Dividends 1,000
Retained earnings, ending balance 3,795
 LAZY RIVER RESORT
STATEMENT OF FINANCIAL POSITION
AT THE PERIOD ENDED MAY 31ST 2020
ASSETS:
Noncurrent assets
Land 12,000
Buildings 60,000
Accumulated Depreciation - Buildings 300
Equipment 14,000
Accumulated Depreciation - Equipment 125
Current assets:
Prepaid Insurance 2,200
Supplies 750
Cash 3,400
TOTAL ASSETS
EQUITY:
Share capital - Ordinary 41,380
RETAINED EARNINGS 3,795
LIABILITIES:
Mortgage payable 40,000
Unearned rent revenues
Salaries and Wages Payable
Interest Payable
Accounts payable
TOTAL EQUITY AND LIABILITIES