The Highland Cove Resort has a May 31 fiscal year end and prepares adjusting entries on a monthly basis. The following trial balance was prepared before recording the May 31 month-end adjustments:

Instructions

a. Prepare T accounts and enter the unadjusted trial balance amounts.

b. Prepare and post the monthly adjusting journal entries on May 31.

c. Prepare an adjusted trial balance at May 31.

d. Prepare an income statement and a statement of owner?s equity for the year ended May 31, and a balance sheet as at May 31, 2021.

Is the owner?s capital account on the May 31, 2021, adjusted trial balance the same amount as shown in the May 31, 2021, balance sheet? Why or why not?

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HIGHLAND COVE RESORT Trial Balance May 31, 2021 Credit Debit $ 17,520 Cash Prepaid insurance Supplies Land 1,590 995 35,000 Building Accumulated depreciation-building 150,000 $ 47,750 33,000 Furniture Accumulated depreciation-furniture Accounts payable Unearned revenue 12,925 8,500 15,000 Mortgage payable K. MacPhail, capital K. MacPhail, drawings Service revenue 96,000 85,000 42,735 246,150 Depreciation expense Insurance expense Interest expense Repairs expense Salaries expense Supplies expense Utilities expense 5,775 5,830 5,720 14,400 156,710 4,450 37,600 $511,325 $511,325