Problem
The Skyline Motel opned for business on May 1, 2017. It's Trial Balance before adjustment on May 31 is as follows:
|
Account Number
|
|
Debit
|
Credit
|
|
101
|
Cash
|
3600
|
|
|
126
|
Supplies
|
2150
|
|
|
130
|
Prepaid Insuranc
|
1800
|
|
|
140
|
Land
|
15000
|
|
|
141
|
Buildings
|
61200
|
|
|
149
|
Equiptment
|
16600
|
|
|
201
|
Accounts Payable
|
|
11000
|
|
208
|
Unearned Rent Revenue
|
|
3200
|
|
275
|
Mortgage Payable
|
|
40000
|
|
311
|
Common Stock
|
|
35300
|
|
429
|
Rent Revenue
|
|
14600
|
|
610
|
Advertising Expense
|
550
|
|
|
726
|
Salaries and Wages
|
3300
|
|
|
732
|
Utilities Expens
|
900
|
|
|
|
104100
|
104100
|
In addition to those accounts listed on the trial balance, the chart of accounts for Skyline Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, No. 150 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.
Other Data:
1. Prepaid insurance is a 1-year policy starting May 1, 2017.
2. A count of supplies shows $700 of unused supplies on May 31.
3. Annual depreciation is $3,060 on the buildings and $1,560 on equipment.
4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.)
5. Two-thirds of the unearned rent revenue has been earned.
6. Salaries of $800 are accrued and unpaid at May 31.
A: Journalize the adjusting Entries on May 31.
B: Prepare a Ledger using the three -column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries.
C: Prepare an Adjusted Trial Balance on May 31
D: Prepare an Income Statement for the month of May 31.
E: Prepare a Retained Earning Statement for the month May 31
F: Prepare a Balance Sheet at May 31.