Mountain View Apartments (MVA), Inc.’s records show the following information as of December 31, the

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Mountain View Apartments (MVA), Inc.’s records show the following information as of December 31, the end of the current year:

Rent MVA collected $500,000 rent in cash from tenants during the current year for occupancy during the current year. $10,000 of tenants’ current-year December rent will be collected in January of next year. Some tenants prepaid their January rent in December of the current year, in the amount of $14,000.

Salaries In January of the current year, MVA paid employees $6,000 for work done in the prior year. During the current year, MVA paid employees $70,000 for work done in the current year. At the end of the current year, MVA owed employees $3,000 for work performed in December that will be paid in January of next year.

Supplies MVA keeps certain maintenance supplies on hand. The amount of supplies on hand on January 1 of the current year was $7,000, and an additional $8,000 of supplies were purchased during the current year. At the end of the current year, $2,000 of supplies remained on hand.

Requirements Calculate the December 31 balances for the accounts shown in the table below and insert them in the table. The December 31 balances are the final balances for the year, after adjusting entries but before closing entries (as you would see them in the adjusted trial balance). Below the table, show your calculations and briefly explain them. In the same table, indicate with a Y (Yes) or N (No) if the account balance would be reported in the income statement or balance sheet. Calculate the cash flows shown in the second table and enter the amounts in the table. Show cash inflows as positive amounts and cash outflows as negative amounts. Again, show your calculations and briefly explain them.

Account

December 31 Balance

Reported on Income Statement?

Reported on Balance Sheet?

Rent Receivable

Maintenance Supplies

Unearned Rent Revenue

Salaries Payable

Rent Revenue

Salaries Expense

Maintenance Supplies Expense