Cash $24,600 (D)
Prepaid Insurance $5400 (D)
Supplies 4300 (D)
Land $40,000 (D)
Cottages $132,000 (D)
Furniture $36,000 (D)
Accounts Payable $6500 (C)
Unearned Rent Revenue $6800 (C)
Mortgage Payable 120,000 (C)
Common Stock $100,000 (C)
Dividends $5000 (D)
Rent Revenue $80,000 (C)
Salaries Exp $53,000 (D)
Utilities Exp $9,400 (D)
Repair Exp $3,600
1. Insurance expires at the rate of $450 per month
2. Aug 31 shows 1,200 of supplies on hand
3. Annual depreciation is 4800 on cottages and 4,000 on furniture
4. unearned rent of 5000 was earned prior to aug31
5. Salaries of 600 were unpaid at August 31
6. Rentals of 1,200 were due from tenants at aug31.
7. The mortgage interest rate is 7% per year (the mortgage was taken out Aug1.
How do I journalize the adjusting entries on Aug 31 for the 3-month period June1-Aug31?

1. Calculate the insurance expense for the period. The entry is Debit Insurance Expense for the amount and Credit Prepaid insurance for the amount.

2. Calculate the difference between the Supplies Account and Supplies onhand. Then Debit Supplies Expense for the amount and Credit Supplies for the amount.

3. Calculate 3 months of depreciation for both items. Then Debit Depreciation Expense for the Total amount, Credit Accumulated Depreciation - Cottages for the Cottages depreciaiton and Credit Accumulated Depreciation - Furniture for the Furniture Depreciation.

4. Debit Unearned Rent Revenue for the amount, Credit Rent Revenue for the amount.

5. Debit Salaries Expense for the amount, Credit Salaries Payable for the amount.

6. Debit Accounts Receivable for the amount, Credit Rent Revenue for the amount.

7. Calculate 3 months of interest. Principal X Rate X Time. $120,000 X 7% X 3/12. Debit Interest Expense for the amount, Credit Interest Payable for the amount.