Question

The Sandhill Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.

SANDHILL HOTEL Trial Balance May 31, 2022
		Debit			Credit
Cash		$ 2,523
Supplies		2,600
Prepaid Insurance		1,800
Land		15,023
Buildings		72,400
Equipment		16,800
Accounts Payable					$ 4,723
Unearned Rent Revenue					3,300
Mortgage Payable					38,400
Common Stock					60,023
Rent Revenue					9,000
Salaries and Wages Expense		3,000
Utilities Expense		800
Advertising Expense		500
		$115,446			$115,446

Other data:

1.		Insurance expires at the rate of $300 per month.
2.		A count of supplies shows $1,190 of unused supplies on May 31.
3.		(a) Annual depreciation is $3,240 on the building.
		(b) Annual depreciation is $2,640 on equipment.
4.		The mortgage interest rate is 5%. (The mortgage was taken out on May 1.)
5.		Unearned rent of $2,600 has been earned.
6.		Salaries of $770 are accrued and unpaid at May 31.

Prepare an adjusted trial balance on May 31.

SANDHILL HOTEL Adjusted Trial Balance choose the accounting period                                                                      May 31, 2022For the Month Ended May 31, 2022For the Year Ended May 31, 2022
	Debit	Credit
enter an account title	$enter a debit balance	$enter a credit balance
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enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
enter an account title	enter a debit balance	enter a credit balance
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	$enter a total for the debit column	$enter a total for the credit column

Answer 1

Solution

SANDHILL HOTEL
Adjusted Trial Balance
For the month ended May 31
					Debit	Credit
Cash					$         2,523.00
Supplies					$         1,190.00
Prepaid Insurance					$         1,500.00
Land					$       15,023.00
Building					$       72,400.00
Equipment					$       16,800.00
Accumulated depreciation- Building						$              270.00
Accumulated depreciation- Equipment						$              220.00
Accounts Payable						$          4,723.00
Interest payable						$              160.00
Unearned rent revenue						$              700.00
Salaries and wages payable						$              770.00
Mortgage payable						$        38,400.00
Common stock						$        60,023.00
Rent revenue						$        11,600.00
Salaries and wages expense					$         3,770.00
Utilities Expense					$             800.00
Advertising expense					$             500.00
Insurance expense					$             300.00
Supplies expense					$         1,410.00
Depreciation expense-Building					$             270.00
Depreciation expense-Equipment					$             220.00
Interest expense					$             160.00
Totals					$   116,866.00	$   116,866.00

Working

SANDHILL HOTEL
Adjusted Trial Balance
For the month ended May 31
	Unadjusted balances		Adjustments		Adjusted balances
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$    2,523.00				$         2,523.00
Supplies	$    2,600.00			$ 1,410.00	$         1,190.00
Prepaid Insurance	$    1,800.00			$     300.00	$         1,500.00
Land	$ 15,023.00				$       15,023.00
Building	$ 72,400.00				$       72,400.00
Equipments	$ 16,800.00				$       16,800.00
Accumulated depreciation- Building				$     270.00		$              270.00
Accumulated depreciation- Equipment				$     220.00		$              220.00
Accounts Payable		$    4,723.00				$          4,723.00
Interest payable				$     160.00		$              160.00
Unearned rent revenue		$    3,300.00	$ 2,600.00			$              700.00
Salaries and wages payable				$     770.00		$              770.00
Mortgage payable		$ 38,400.00				$        38,400.00
Common stock		$ 60,023.00				$        60,023.00
Rent revenue		$    9,000.00		$ 2,600.00		$        11,600.00
Salries and wages expense	$    3,000.00		$     770.00		$         3,770.00
Utilities Expense	$      800.00				$             800.00
Advertising expense	$      500.00				$             500.00
Insurance expense			$     300.00		$             300.00
Supplies expense			$ 1,410.00		$         1,410.00
Depreciation expense-Building			$     270.00		$             270.00
Depreciation expense-Equipment			$     220.00		$             220.00
Interest expense			$     160.00		$             160.00
Totals	$115,446.00	$115,446.00	$ 5,730.00	$ 5,730.00	$   116,866.00	$   116,866.00