PROBLEM $3\mathrm{.}2($Continued$)$

In addition to those accounts listed on the trial balance, the chart of accounts for Lazy River Resort 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:

Prepaid insurance is a $1-$year policy starting May $1,2020.$

A count of supplies shows $750$ of unused supplies on May $31.$

Annual depreciation is $3,600$ on buildings and $1,500$ on equipment.

$4.$The mortgage interest rate is $6\%.($The mortgage was taken out on May $1.)$

Two$-$thirds of the unearned rent revenue is recognized as revenue.

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.

$($C$)$ Prepare an adjusted trial balance on May $31$

$($D$)$ Prepare an income statement for the month of May $31.$

$($E$)$ Prepare a retained earnings statement for the month of May $31.$

$($F$)$ Prepare a statement of financial position as of May $31.$

P$3\mathrm{.}2$ Prepare adjusting entries, post, and prepare adjusted trial balance and financial

statements.

Lazy River Resort opened for business on May $1,2020.$ Its trial balance before adjustment on

May $31$ is as follows.