The Skyline Motel opned for business on May 1, 2017. It's Trial Balance before adjustment on May 31 is as follows:
Skyline Motel Trial Balance May 31, 2017
| 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: 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.
B: Prepare an Income Statement for the month of May 31.
C: Prepare a Balance Sheet at May 31.