1 2 3 A B D E F PROB:The Mercury Motel opened for business on May 1, 2013, its trial balance before adjustment is as follows Mercury Motel Trial Balance as at 31 May 2013 Acct. No. Dr Cr 4 5 6 7 101 Cash 2500 8 1900 9 2400 10 126 Supplies 130 Prepaid Insurance 140 Land 141\ Buildings 149 Furniture 15000 11 70000 12 16800 13 5300 201 Accounts Payable Unearned Rent 208 Revenue (L) 14 3600 15 35000 275 Mortagage Payable 301 Sue Philips Capital 16 60000 17 429 Rent Revenue 9200 18 500 19 610 Advertising Expense 726 Salaries Expense 732 Utilities Expense 3000 20 1000 21 113100 113100 22 23 24 In addition to those accts listed on the TB, the chart of accouts of Mercury Motel also contains the ff. accounts and acct. no.: No. 142 Accumulated Depreciation-Furniture, No. 212 Salaries Payable, No. 230 Interest Payable, No. 619 Depr Exp-Bldg, No. 620 Depr Exp-Furniture, No. 631 Supplies Exp, No. 718 Interest Exp, No. 722 Insurance Exp. Other data: 25 26 27 28 29 1. Insurance expires at the rate of P200 per month. 2. A count of supplies shows P900 of unused supplies on May 31 3. Annual depreciation is P2,400 on the building and P3,000 on furniture 4. The mortgage interest rate is 12%. The mortgage was taken out on 1 May. 5. Unearned rent of P2,500 has been earned. 6. Salaries of P800 are accrued and unpaid as at 31 May. 30 31 32 33 34 35 36 37 Required. Prepare the following: 38 1. Adjusting entriesfor the month of May. 2. Worksheet 39 40 3. Financial Statements H I . K 4 5 Debit Unadjusted Trial Balance Debit Credit 2,500 1,900 6 7 8 oo Cash Supplies Prepaid Insurance Expense (A) Land Buildings Furniture Accounts Payable 9 2,400 15,000 70,000 16,800 10 11 12 5,300 13 Unearned Rent Revenue ( 3,600 14 15 35,000 60,000 9,200 16 17 Mortagage Payable Sue Philips Capital Rent Revenue Advertising Expense Salaries Expense Utilities Expense Sub-Totals 500 18 19 3,000 1,000 113,100 20 113,100 21 22 23 24 25 26 27 Accumulated Depreciation-Bldg Accumulated Depreciation-Furniture Salaries Payable Interest Payable Depreciation Exp-Bldg Depreciation Exp- Furniture Supplies Expense Interest Expense Insurance Expense Sub-Totals Profit Totals 2400/12mos=200 mo 3000/12mos=250 mo 28 29 30 31 32 33 34 35 36 Int=35000x. 12x1/12=350 37 Income Statement Ba 38 DR Exp CR CALC Bal Figure Net income 39 Capital +Profit (I-E) 40 1 2 Mercury Motel WORKSHEET 3 Profit or loss Statement of Financial Position 4 nce Balance Sheet Income Statement Debit Credit 5 edit Debit Credit 6 7 8 9 10 11 12 5,300 13 3,600 14 15 35,000 60,000 9,200 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 113,100 32 33 34 35 36 37 38 ure Net income Net income 39 3 nancial Position 4 e Sheet Closing Entries Debit Credit Post Closing Trial Balance Debit Credit LO Credit 6 7 8 9 10 11 12 13 14. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 et income 39 40 41 2 3 4 Name of Entity Profit or loss For the period ended 5 6 7 Service Income 8 Other income 9 Total Income 0 1 Salaries Expense Repairs & Maintenance Utilities Expense 2 3 Communication Epense 4 5 6 7 Taxes & Licenses Depreciation Expense - Building Depreciation Expense - Office Equipment Depreciation Expense -Furnitures & Fixtures Office Supplies Expense Interest Expense Total Expenses Profit or Loss 0 8 9 1 E2 23 4 25 Name of Entity Statement of Changes in Owner's Equity For the period ended 26 7 28 29 30 0 Owner Capital, Beginning Changes Profit or Loss Drawing Total Changes - Inc (De Owner Capital, Ending :1 2 0 33 0 4 5 Name of Entity 86 Statement of Financial Position 37 As of the period ended 8 29 ASSETS 10 Cash Landscape Cassini-merchandi... Mercury ... Y Z AA AB AC AD AE ASSETS Cash Accounts Receivable Office Supplies Research Resources Land 0 Building Accumulated Deprecia Office Equipment Accumulated Deprecia Furnitures & Fixtures Accumulated Deprecia Total Assets 0 0 0 LIABILITIES & OWNER'S EQUITY Accounts Payable Notes Payable Unearned Revenues Interest Payable Utilities Payable Salaries Payable Total Liabiltiies 0 Owner Capital, Ending 0 Total Liabiltiies & Owne 0 O Olo Name of Entity Statement of Cash Flows As of the period ended Operating Activities Receipts Less Payments Net inflow (outflow) frc 0 Investing Activities Receipts Less Payments Net inflow (outflow) from investing activities Financing Activities Receipts Less Payments Net inflow (outflow) from financing activities Total increase (decrease) in cash AB AC AD a Z AA Receipts Less Payments Net inflow (outflow) frc 0 Investing Activities Receipts Less Payments Net inflow (outflow) from investing activities Financing Activities Receipts Less Payments Net inflow (outflow) from financing activities Total increase (decrease) in cash Cash Beginning balance Cash Ending balance 0 1 2 3 A B D E F PROB:The Mercury Motel opened for business on May 1, 2013, its trial balance before adjustment is as follows Mercury Motel Trial Balance as at 31 May 2013 Acct. No. Dr Cr 4 5 6 7 101 Cash 2500 8 1900 9 2400 10 126 Supplies 130 Prepaid Insurance 140 Land 141\ Buildings 149 Furniture 15000 11 70000 12 16800 13 5300 201 Accounts Payable Unearned Rent 208 Revenue (L) 14 3600 15 35000 275 Mortagage Payable 301 Sue Philips Capital 16 60000 17 429 Rent Revenue 9200 18 500 19 610 Advertising Expense 726 Salaries Expense 732 Utilities Expense 3000 20 1000 21 113100 113100 22 23 24 In addition to those accts listed on the TB, the chart of accouts of Mercury Motel also contains the ff. accounts and acct. no.: No. 142 Accumulated Depreciation-Furniture, No. 212 Salaries Payable, No. 230 Interest Payable, No. 619 Depr Exp-Bldg, No. 620 Depr Exp-Furniture, No. 631 Supplies Exp, No. 718 Interest Exp, No. 722 Insurance Exp. Other data: 25 26 27 28 29 1. Insurance expires at the rate of P200 per month. 2. A count of supplies shows P900 of unused supplies on May 31 3. Annual depreciation is P2,400 on the building and P3,000 on furniture 4. The mortgage interest rate is 12%. The mortgage was taken out on 1 May. 5. Unearned rent of P2,500 has been earned. 6. Salaries of P800 are accrued and unpaid as at 31 May. 30 31 32 33 34 35 36 37 Required. Prepare the following: 38 1. Adjusting entriesfor the month of May. 2. Worksheet 39 40 3. Financial Statements H I . K 4 5 Debit Unadjusted Trial Balance Debit Credit 2,500 1,900 6 7 8 oo Cash Supplies Prepaid Insurance Expense (A) Land Buildings Furniture Accounts Payable 9 2,400 15,000 70,000 16,800 10 11 12 5,300 13 Unearned Rent Revenue ( 3,600 14 15 35,000 60,000 9,200 16 17 Mortagage Payable Sue Philips Capital Rent Revenue Advertising Expense Salaries Expense Utilities Expense Sub-Totals 500 18 19 3,000 1,000 113,100 20 113,100 21 22 23 24 25 26 27 Accumulated Depreciation-Bldg Accumulated Depreciation-Furniture Salaries Payable Interest Payable Depreciation Exp-Bldg Depreciation Exp- Furniture Supplies Expense Interest Expense Insurance Expense Sub-Totals Profit Totals 2400/12mos=200 mo 3000/12mos=250 mo 28 29 30 31 32 33 34 35 36 Int=35000x. 12x1/12=350 37 Income Statement Ba 38 DR Exp CR CALC Bal Figure Net income 39 Capital +Profit (I-E) 40 1 2 Mercury Motel WORKSHEET 3 Profit or loss Statement of Financial Position 4 nce Balance Sheet Income Statement Debit Credit 5 edit Debit Credit 6 7 8 9 10 11 12 5,300 13 3,600 14 15 35,000 60,000 9,200 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 113,100 32 33 34 35 36 37 38 ure Net income Net income 39 3 nancial Position 4 e Sheet Closing Entries Debit Credit Post Closing Trial Balance Debit Credit LO Credit 6 7 8 9 10 11 12 13 14. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 et income 39 40 41 2 3 4 Name of Entity Profit or loss For the period ended 5 6 7 Service Income 8 Other income 9 Total Income 0 1 Salaries Expense Repairs & Maintenance Utilities Expense 2 3 Communication Epense 4 5 6 7 Taxes & Licenses Depreciation Expense - Building Depreciation Expense - Office Equipment Depreciation Expense -Furnitures & Fixtures Office Supplies Expense Interest Expense Total Expenses Profit or Loss 0 8 9 1 E2 23 4 25 Name of Entity Statement of Changes in Owner's Equity For the period ended 26 7 28 29 30 0 Owner Capital, Beginning Changes Profit or Loss Drawing Total Changes - Inc (De Owner Capital, Ending :1 2 0 33 0 4 5 Name of Entity 86 Statement of Financial Position 37 As of the period ended 8 29 ASSETS 10 Cash Landscape Cassini-merchandi... Mercury ... Y Z AA AB AC AD AE ASSETS Cash Accounts Receivable Office Supplies Research Resources Land 0 Building Accumulated Deprecia Office Equipment Accumulated Deprecia Furnitures & Fixtures Accumulated Deprecia Total Assets 0 0 0 LIABILITIES & OWNER'S EQUITY Accounts Payable Notes Payable Unearned Revenues Interest Payable Utilities Payable Salaries Payable Total Liabiltiies 0 Owner Capital, Ending 0 Total Liabiltiies & Owne 0 O Olo Name of Entity Statement of Cash Flows As of the period ended Operating Activities Receipts Less Payments Net inflow (outflow) frc 0 Investing Activities Receipts Less Payments Net inflow (outflow) from investing activities Financing Activities Receipts Less Payments Net inflow (outflow) from financing activities Total increase (decrease) in cash AB AC AD a Z AA Receipts Less Payments Net inflow (outflow) frc 0 Investing Activities Receipts Less Payments Net inflow (outflow) from investing activities Financing Activities Receipts Less Payments Net inflow (outflow) from financing activities Total increase (decrease) in cash Cash Beginning balance Cash Ending balance 0