In: Accounting
The Ivanhoe Hotel opened for business on May 1, 2022. Here is
its trial balance before adjustment on May 31.
IVANHOE
HOTEL Trial Balance May 31, 2022 |
||||||
---|---|---|---|---|---|---|
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. |
A. 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.)
B. Prepare an income statement for the month of May.
C. Prepare a retained earnings statement for the month of May.
D. Prepare a classified balance sheet at May 31. (List current assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment .)
E. Identify which accounts should be closed on May 31.
Cash |
select an option ClosedNot Closed | |
---|---|---|
Supplies |
select an option ClosedNot Closed | |
Prepaid Insurance |
select an option ClosedNot Closed | |
Land |
select an option ClosedNot Closed | |
Buildings |
select an option ClosedNot Closed | |
Equipment |
select an option ClosedNot Closed | |
Accounts Payable |
select an option ClosedNot Closed | |
Unearned Rent Revenue |
select an option ClosedNot Closed | |
Mortgage Payable |
select an option ClosedNot Closed | |
Common Stock |
select an option ClosedNot Closed | |
Rent Revenue |
select an option ClosedNot Closed | |
Salaries and Wages Expense |
select an option ClosedNot Closed | |
Utilities Expense |
select an option ClosedNot Closed | |
Advertising Expense |
select an option ClosedNot Closed | |
Interest Expense |
select an option ClosedNot Closed | |
Insurance Expense |
select an option ClosedNot Closed | |
Supplies Expense |
select an option ClosedNot Closed | |
Depreciation Expense |
select an option ClosedNot Closed |