The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.
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Q1.docxThe Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.
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MOTO HOTEL Trial Balance May 31, 2017 |
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Debit |
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Credit |
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Cash |
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$ 2,623 |
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Supplies |
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2,600 |
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Prepaid Insurance |
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1,800 |
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Land |
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15,123 |
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Buildings |
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70,000 |
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Equipment |
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16,800 |
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Accounts Payable |
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$ 4,823 |
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Unearned Rent Revenue |
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3,300 |
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Mortgage Payable |
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36,000 |
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Common Stock |
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60,123 |
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Rent Revenue |
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9,000 |
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Salaries and Wages Expense |
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3,000 |
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Utilities Expense |
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800 |
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Advertising Expense |
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500 |
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$113,246 |
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$113,246 |
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Other data:
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1. |
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Insurance expires at the rate of $300 per month. |
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2. |
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A count of supplies shows $1,050 of unused supplies on May 31. |
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3. |
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(a) Annual depreciation is $3,480 on the building. |
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(b) Annual depreciation is $2,880 on equipment. |
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4. |
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The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) |
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5. |
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Unearned rent of $2,590 has been earned. |
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6. |
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Salaries of $730 are accrued and unpaid at May 31. |
Journalize the adjusting entries on May 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
