accounting 2,1

Schmedley’s Extended Stay Hotel opened for business on October 1, 2020.  At December 31, 2020, Schmedley’s trial balance (prior to any adjustments) revealed the following:

a. The December 31 unadjusted balance of $440 in prepaid insurance represents a one-year premium that was paid on October 1. Insurance Expense $110; Prepaid Insurance $110

b.  The December 31 unadjusted balance in supplies is $260.  A physical count on December 31 shows $70 of supplies remaining.: Supplies Expense 190; Supplies 190

c. The December 31 unadjusted balance of unearned rent revenue was $460.  Of this amount, $300 was earned during the three months ended December 31.Unearned Revenue 300; Revenue 300

d. Salaries of $27 were earned by employees in the last week of 2020; at December 31, Schmedley has neither recorded nor paid these salaries. Salaries Expense $27; Salaries Payable $27

e. There is no balance in accounts receivable at December 31.  Rentals of $100 due from tenants on that date have not yet been recorded.  Accounts Receivable $100; Rent Revenue $100

f. There is a $6,000 balance in mortgage payable at December 31.  The interest rate on the mortgage is 5% per year. Interest Expense $300; Interest Payable $300