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Accounting Problem




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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