(c)

Problem 3-2A (Part Level Submission) The Skyline Motel opened for business on May 1, 2015. Its trial balance before adjustment on May 31 is as follows Trial Balance May 31, 2015 101 126 130 Cash 3,481 2,126 2,340 12,790 59,280 15,480 Prepaid Insurance 141 149 11,563 3,210 40,000 35,471 10,216 Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 208 275 301 610 726 732 640 3,379 $100,460 $100,460 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, 2015 2. A count of supplies shows $710 of unused supplies on May 31 3. Annual depreciation is $2,964 on the buildings and $1,548 on equipment. The mortgage interest rate is 12%. (The mortgage was taken out on May 1. S. Two-thirds of the unearned rent revenue has been earned 6. Salaries of $800 are accrued and unpaid at May 31 Your answer is correct Journalize the adjusting entries on May 31. (Credit account title No. Date Account Titles and Explanation 1. May 31 Insurance Expense Debit Credit 195) Prepaid Insurance Tala % 2. May 31 Supplies Expensel 1416 Supplies 3. May 31 Depreciation Expense 376T ccumulated Depreciation-Buildings ccumulated Depreciation-EquipmentT129 4. May 31 Interest Expense 400 2140 Oo Interest Payable 400 - 5. May 31 Tunearned Rent Revenue) 7440 2140 Rent Revenue 6. May 31 Salaries and wages Expense 800 Salaries and Wages Payable [] Your answer is correct. Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries posted in the previous part of the question.) No. 101 Ref Debit Credit Balance Cash DateExplanation 3481 May 31 Balance Supplies No. 126 Ref Debit Credit Balance Date May 31 May 31 Prepaid Insurance 1261 Balance No. 130 DateExplanation Ref Debit Credit Balance May 31 May 31 Land Balance 34 Adjusting 195 12145 No. 140 Ref Debit Credit Balance Date Ex May 31 Buildings Balance 279 No. 141 Date Ex Ref Debit Credit Balance May 31 Balance Accumulated ildings No. 142 Ref Debit Credit Balance DateExplanation 17 24 [1247 May 31 No. 149 Equipment Date Explanation Ref Debit Credit Balance May 31 15480 Balance Accumulated Depreciation-Equipment No. 150 Ref Debit Credit Balance DateExplanation May 31 Adjusting 29 1129 Accounts Payable No. 201 Ref Debit Credit Balance DateExplanation May 31 Balance 11563 No. 208 Unearned Rent Revenue DateExplanation Ref Debit Credit Balance May 31 May 31 Salaries and Wages Payable Balance 11 Adjusting 1070 No. 212 DateExplanation Ref Debit Credit Balance May 31 Interest Payable Adjusting 00 800 No. 230 DateExplanation Ref Debit Credit Balance May 31 Adjusting 00 400 Mortgage Payable No. 275 Ref Debit Credit Balance DateExplanation 40000 May 31 Balance Common Stock No. 301 Explanation Date Ref Debit Credit Balance May 31 Balance 35471 Rent Revenue No. 429 DateExplanation Ref Debit Credit Balance 0216 May 31 May 31 Advertising Expense Balance 2 Adjusting 140 12356 No. 610 Explanation Ref Debit Credit Balance Date May 31 Balance Depreciation Expense No. 619 Date Explanation Ref Debit Credit Balance May 31 1 376 Adjusting Supplies Expense No. 631 Explanation Adjusting Date Ref Debit Credit Balance May 31 1 141 416 No. 718 Interest Expense Date Explanation Ref Debit Credit Balance May 31 Adjusting No. 722 Insurance Expense Date Explanation Ref Debit Credit Balance May 31 JI Adjusting 195 No. 726 Salaries and Wages Expense Date Explanation Ref Debit Credit Balance 3379 May 31 May 31 Utilities Expense Balance Adjusting 179 No. 732 Date Explanation Ref Debit Credit Balance May 31 Balance 4 Prepare an adjusted trial balance on May 31 SKYLINE MOTEL Adjusted Trial Balance May 31, 2015 Debit Credit