Class-Question-4-3a-The-Moto-Hotel

The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.

MOTO HOTEL
Trial Balance
May 31, 2017
Debit

Credit

Cash $ 2,613
Supplies 2,600
Prepaid Insurance 1,800
Land 15,113
Buildings 70,000
Equipment 16,800
Accounts Payable $ 4,813
Unearned Rent Revenue 3,300
Mortgage Payable 36,000
Common Stock 60,113
Rent Revenue 9,000
Salaries and Wages Expense 3,000
Utilities Expense 800
Advertising Expense

500

$113,226

$113,226

Other data:

1. Insurance expires at the rate of $360 per month.
2. A count of supplies shows $1,180 of unused supplies on May 31.
3. (a) Annual depreciation is $2,760 on the building.
(b) Annual depreciation is $2,160 on equipment.
4. The mortgage interest rate is 5%. (The mortgage was taken out on May 1.)
5. Unearned rent of $2,670 has been earned.
6. Salaries of $710 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.)

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3 (a).

3 (b).

4.

5.

6.

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT

Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (Post entries in the order of journal entries presented in the previous question.)

Cash

Supplies

Prepaid Insurance

Land

Building

Accumulated Depreciation-Building

Equipment

Accumulated Depreciation-Equipment

Accounts Payable

Unearned Rent Revenue

Salaries and Wages Payable

Interest Payable

Mortgage Payable

Common Stock

Rent Revenue