Question
The Solo Hotel opened for business on May 1, 2014. Here is itstrial balance before adjustment on May 31.
(Prepare a ledger using T-accounts. Enter the trial balanceamounts and post the adjusting entries)
|
SOLO HOTEL Trial Balance May 31, 2014 |
||||
|
|
|
Debit |
|
Credit |
|
Cash |
|
$ 2,971 |
|
|
|
Supplies |
|
2,600 |
|
|
|
Prepaid Insurance |
|
1,800 |
|
|
|
Land |
|
15,471 |
|
|
|
Buildings |
|
76,000 |
|
|
|
Equipment |
|
16,800 |
|
|
|
Accounts Payable |
|
|
|
$ 5,171 |
|
Unearned Rent Revenue |
|
|
|
3,300 |
|
Mortgage Payable |
|
|
|
42,000 |
|
Common Stock |
|
|
|
60,471 |
|
Rent Revenue |
|
|
|
9,000 |
|
Salaries and Wages Expense |
|
3,000 |
|
|
|
Utilities Expense |
|
800 |
|
|
|
Advertising Expense |
|
500 |
|
|
|
|
|
$119,942 |
|
$119,942 |
Other data:
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1. |
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Insurance expires at the rate of $300 per month. |
|
2. |
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A count of supplies shows $1,127 of unused supplies on May31. |
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3. |
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(a) Annual depreciation is $4,080 on the building. |
|
|
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(b) Annual depreciation is $3,960 on equipment. |
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4. |
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The mortgage interest rate is 5%. (The mortgage was taken outon May 1.) |
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5. |
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Unearned rent of $2,653 has been earned. |
|
6. |
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Salaries of $690 are accrued and unpaid at May 31. |
