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P3-2A The Thayer Motel Inc. opened for business on May 1, 2006. Its trial balance before adjustment on May 31 is as follows.




P3-2A;The Thayer Motel Inc. opened for business on May 1, 2006. Its trial balance before;adjustment on May 31 is as follows.;THAYER MOTEL INC.;Trial Balance;May 31, 2006;Account;Number Debit Credit;101 Cash 2,500;126 Supplies 1,900;130 Prepaid Insurance 2,400;140 Land 15,000;141 Lodge 70,000;149 Furniture 16,800;201 Accounts Payable 5,300 208 Unearned Rent 4,600;275 Mortgage Payable 35,000;311 Common Stock 60,000;332 Dividends 1,000;429 Rent Revenue 9,200;610 Advertising Expense 500;726 Salaries Expense 3,000;732 Utilities Expense 1,000;$114,100 $114,100;In addition to those accounts listed on the trial balance, the chart of accounts for Thayer Motel;also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-;Lodge, No. 150 Accumulated Depreciation-Furniture, No. 212 Salaries Payable, No. 230;Interest Payable, No. 320 Retained Earnings, No. 619 Depreciation Expense-Lodge, No. 621;Depreciation Expense-Furniture, No. 631 Supplies Expense, No. 718 Interest Expense, and;No. 722 Insurance Expense.;Other data;1. Insurance expires at the rate of $200 per month.;2. A count of supplies shows $900 of unused supplies on May 31.;3. Annual depreciation is $2,400 on the lodge and $3,000 on furniture.;4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.);5. Unearned rent of $2,500 has been earned.;6. Salaries of $800 are accrued and unpaid at May 31.;Instructions;(a) Journalize the adjusting entries on May 31.;(b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts;and post the adjusting entries. (Use J1 as the posting reference.);(c) Prepare an adjusted trial balance on May 31.;(d) Prepare an income statement and a retained earnings statement for the month of May and;a balance sheet at May 31.


Paper#24944 | Written in 18-Jul-2015

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