Problem: Western Hoteliers, Inc.’s unadjusted and adjusted trial balances at September 30, 20x1, follow:
Western Hoteliers, Inc
Adjusted trial balance September 30, 20x1
Trial Balance adjusted trial balance
Account title debit credit debit credit
Cash 8180 8180
Accounts receivable 6360 6840
Interest receivable 300
Notes receivable 4100 4100
Supplies 980 290
Prepaid insurance 2480 720
Building 66450 66450
Accumulated depreciation 16010 18210
Accounts payable 6920 6920
Wages payable 170
Unearned rental revenue 670 110
Common stock 18000 18000
Retained earnings 42790 42790
Dividends 3600 3600
Rental revenue 9940 10980
Interest revenue 300
Wage expense 1600 1770
Insurance expense 1760
Depreciation expense 2200
Property tax expense 370 370
Supplies expense 690
Utilities expense 210 210
94330 94330 97480 97480
Western Hoteliers, Inc
Adjusted trial balance September 30, 20x1
Required:
1. Make the adjusted entries that account for the differences between the two trial balances. Western is not subject to income tax.
2. Compute western’s total assets, total liabilities, total equity, and net income.