Exercise 3-10 Waterway Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. WATERWAY RESORT TRIAL BALANCE AUGUST 31, 2020 Debit Credit Cash $25,300 Prepaid Insurance 10,200 Supplies 8,300 Land 28,000 Buildings 128,000 Equipment 24,000 Accounts Payable $10,200 Unearned Rent Revenue 10,300 Mortgage Payable 68,000 Common Stock 104,700 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 84,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 $286,400 $286,400 Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020. 2. An inventory count on August 31 shows $445 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $4,172 was earned prior to August 31. 5. Salaries of $365 were unpaid at August 31. 6. Rentals of $843 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year. Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31. (Round answers to the nearest whole dollar, e. g. 5,275. 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.) No. Date Account Titles and Explanation Debit Credit 1. Aug. 31 Insurance Expense 2,575 Prepaid Insurance 2,575 2. Aug. 31 Supplies Expense 7,855 Supplies 7,855 3. (a) Aug. 31 Depreciation Expense 1,280 accumulated depreciation - Building 1,280 3. (b) Aug. 31 Depreciation Expense 600 accumulated depreciation - equipment 600 4. Aug. 31 Unearned Rent Revenue 4,172 Rent Revenue 4,172 5. Aug. 31 Salaries and Wages Expense 365 Salaries and Wages Payable 365 6. Aug. 31 Accounts Receivable 843 Rent Revenue 843 7. Aug. 31 Interest Expense 1,360 Interest Payable 1,360 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare an adjusted trial balance on August 31. WATERWAY RESORT Adjusted Trial Balance August 31, 2020 Debit Credit Cash $ 25,300 $ Accounts Receivable 843 Prepaid Insurance 7,625 Supplies 445 Land 28,000 Buildings 126,720 Accumulated Depreciation-Building 1,280 Equipment 24,000 Accumulated Depreciation-Equipment 600 Accounts Payable 10,200 Unearned Rent Revenue 6,128 Salaries and Wages Payable 365 Interest Payable 1,360 Mortgage Payable 680,000 Common Stock 104,700 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 84,200 Salaries and Wages Expense 45,165 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 Insurance Expense 2,575 Supplies Expense 7,855 Depreciation Expense 1,880 Interest Expense 1,360 Totals $ $