Problem 4-3A
The Solo Hotel opened for business on May 1, 2014. Here is its trial balance before adjustment on May 31.
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SOLO HOTEL
Trial Balance
May 31, 2014
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Debit
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Credit
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Cash
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$ 2,834
|
|
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Supplies
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2,600
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|
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Prepaid Insurance
|
1,800
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|
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Land
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15,334
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|
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Buildings
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76,000
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|
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Equipment
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16,800
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|
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Accounts Payable
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$ 5,034
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Unearned Rent Revenue
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3,300
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Mortgage Payable
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42,000
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Common Stock
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60,334
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Rent Revenue
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|
9,000
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Salaries and Wages Expense
|
3,000
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|
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Utilities Expense
|
800
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|
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Advertising Expense
|
500
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|
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$119,668
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$119,668
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Other data:
1. Insurance expires at the rate of $300 per month.
2. A count of supplies shows $1,173 of unused supplies on May 31.
3. (a) Annual depreciation is $3,120 on the building.
(b) Annual depreciation is $3,000 on equipment.
4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
5. Unearned rent of $2,517 has been earned.
6. Salaries of $811 are accrued and unpaid at May 31.
Journalize the adjusting entries on May 31.
Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries.
Prepare an adjusted trial balance on May 31.
Prepare an adjusted trial balance on May 31.
Prepare a retained earnings statement for the month of May.
Prepare a classified balance sheet at May 31.