Question

A: Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question. Round answers to 0 decimal places, e.g. 5,275.)

The Skyline Motel opened for business on May 1, 2017. Its trial balance before adjustment on May 31 is as follows.

SKYLINE MOTEL Trial Balance May 31, 2017
Account Number				Debit		Credit
101		Cash		$ 3,600
126		Supplies		2,050
130		Prepaid Insurance		3,000
140		Land		12,000
141		Buildings		62,400
149		Equipment		15,400
201		Accounts Payable				$ 11,700
208		Unearned Rent Revenue				3,000
275		Mortgage Payable				40,000
311		Common Stock				36,000
429		Rent Revenue				12,500
610		Advertising Expense		600
726		Salaries and Wages Expense		3,300
732		Utilities Expense		850
				$103,200		$103,200

In addition to those accounts listed on the trial balance, the chart of accounts for Skyline Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

1.		Prepaid insurance is a 1-year policy starting May 1, 2017.
2.		A count of supplies shows $800 of unused supplies on May 31.
3.		Annual depreciation is $3,120 on the buildings and $1,536 on equipment.
4.		The mortgage interest rate is 12%. (The mortgage was taken out on May 1.)
5.		Two-thirds of the unearned rent revenue has been earned.
6.		Salaries of $800 are accrued and unpaid at May 31.

Answer 1

	Adjusting entries
31-May	Insurance expense	250	(3000/12)
	Prepaid insurance		250
31-May	Supplies expense	1250	(2050-800)
	Supplies		1250
31-May	Depreciation expense	388
	Accumulated depreciation building		260	(3120/12)
	Accumulated depreciation equipment		128	(1536/12)
31-May	Interest expense	400	(40000*12%*1/12)
	Interest payable		400
31-May	Unearned rent revenue	2000	(3000*2/3)
	Rent revenue		2000
31-May	Salaries and wages exense	800
	Salaries and wages payable		800