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. |
Prepare a retained earnings statement for the month of May.