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##### Accounting Problem

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Question

Question;The;Solo Hotel opened for business on May 1, 2014. Here is its trial balance before;adjustment on May 31.;SOLO HOTEL;Trial Balance;May 31, 2014;Debit;Credit;Cash;\$ 2,500;Supplies;2,600;Prepaid Insurance;1,800;Land;15,000;Buildings;70,000;Equipment;16,800;Accounts Payable;\$ 4,700;Unearned Rent Revenue;3,300;Mortgage Payable;36,000;Common Stock;60,000;Rent Revenue;9,000;Salaries and Wages Expense;3,000;Utilities Expense;800;Advertising Expense;500;\$113,000 =======;\$113,000 =======;Other;data;1. Insurance expires at the rate of \$450 per month.;2.;A count of supplies shows \$1,050 of unused supplies on May 31.;3.;Annual depreciation is \$3,600 on the building and \$3,000 on equipment.;4.;The mortgage interest rate is 6%. (The mortgage was taken out on May 1.);5.;Unearned rent of \$2,500 has been earned.;6.;Salaries of \$900 are accrued and unpaid at May 31.;Instructions;?;(a);Journalize the adjusting entries on May 31.;?;(b);Prepare a ledger using T-accounts. Enter the trial balance amounts and post the;adjusting entries.;?;(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 classified balance sheet at May 31.;Hint: Rent revenue is \$11,500, Adjusted trial balance totals;are \$114,630 and Net income for May is \$3,570

Paper#45342 | Written in 18-Jul-2015

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