Mac's Motel opened for business on May 1, 2017. Its trial balance before adjust ment on...

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Mac's Motel opened for business on May 1, 2017. Its trial balance before adjust ment on May 31 is as follows. МАC'S MOTEL Trial Balance Мaу 31, 2017 Account Number Debit Credit $ 3,500 2,080 2,400 12,000 60,000 15,000 101 Cash Supplies Prepaid Insurance Land 126 130 140 Buildings Equipment Accounts Payable Unearned Rent Revenue 141 149 $ 4,800 3,300 40,000 41,380 10,300 201 208 275 301 Mortgage Payable Owner's Capital 429 Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 610 600 726 3,300 732 900 $99,780 $99,780 In addition to those accounts listed on the trial balance, the chart of accounts for Mac's Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, No. 150 Accumulated Depreciation-Equipment, No. 212 Sala- ries 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, 2017. 2. A count of supplies shows $750 of unused supplies on May 31. 3. Annual depreciation is $3,000 on the buildings and $1,500 on equipment. 4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue has been earned. 6. Salaries of $750 are accrued and unpaid at May 31. Instructions (a) Journalize the adjusting entries on May 31. (b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.) (c) Prepare an adjusted trial balance on May 31. (d) Prepare an income statement and an owner's equity statement for the month of May and a balance sheet at May 31. Mac's Motel opened for business on May 1, 2017. Its trial balance before adjust ment on May 31 is as follows. МАC'S MOTEL Trial Balance Мaу 31, 2017 Account Number Debit Credit $ 3,500 2,080 2,400 12,000 60,000 15,000 101 Cash Supplies Prepaid Insurance Land 126 130 140 Buildings Equipment Accounts Payable Unearned Rent Revenue 141 149 $ 4,800 3,300 40,000 41,380 10,300 201 208 275 301 Mortgage Payable Owner's Capital 429 Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 610 600 726 3,300 732 900 $99,780 $99,780 In addition to those accounts listed on the trial balance, the chart of accounts for Mac's Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, No. 150 Accumulated Depreciation-Equipment, No. 212 Sala- ries 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, 2017. 2. A count of supplies shows $750 of unused supplies on May 31. 3. Annual depreciation is $3,000 on the buildings and $1,500 on equipment. 4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue has been earned. 6. Salaries of $750 are accrued and unpaid at May 31. Instructions (a) Journalize the adjusting entries on May 31. (b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.) (c) Prepare an adjusted trial balance on May 31. (d) Prepare an income statement and an owner's equity statement for the month of May and a balance sheet at May 31.

Answer rating: 100% (QA)

1 2 Prepaid insurance for 1 year Prepaid insurance remaining for 11 months 2400 1112 Expense for 1 month Supplies Unused atend of May Expense for 1 mo... View the full answer