Refer to the data for Rainbow Lodge Ltd. in P4.12A. In P4.12A The following is the unadjusted

Question:

Refer to the data for Rainbow Lodge Ltd. in P4.12A.

In P4.12A

The following is the unadjusted trial balance for Rainbow Lodge Ltd. at its year end, May 31, 2018. The company adjusts its accounts monthly.

Additional information:
1. An annual insurance policy was purchased for the first time on October 1, 2017, for $10,920 cash.
2. A count of supplies shows $1,340 of supplies on hand on May 31.
3. The buildings have an estimated useful life of 20 years and straight-line depreciation is applied.
4. The furniture has an estimated useful life of five years and straight-line depreciation is applied.
5. Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An analysis of these bookings indicates that 175 deposits were received and credited to Unearned Revenue. By May 31, 25 of the deposits were earned.
6. On May 25, a local business contracted with Rainbow Lodge to rent one of its housekeeping units for four months, starting June 1, at a rate of $2,800 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Revenue.
7. On May 31, Rainbow Lodge has earned $1,780 of rent revenue from customers who are currently staying at the inn. The customers will pay the amount owing only when they check out in early June.
8. Salaries of $1,590 are unpaid at May 31.
9. Interest on the mortgage payable is $735 for the month of May and due June 1.
10. The May utility bill of $2,240 has not yet been recorded or paid.
11. Additional income tax is estimated to be $1,000.
Instructions
(a) Prepare the closing journal entries.
(b) Post the closing entries to the T accounts prepared in P4.12A.
(c) Prepare a post-closing trial balance at May 31.