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.

SKYLINE MOTEL Trial Balance May 31, 2015
Account Number				Debit		Credit
101		Cash		$ 3,533
126		Supplies		2,095
130		Prepaid Insurance		2,196
140		Land		12,760
141		Buildings		59,040
149		Equipment		15,000
201		Accounts Payable				$ 11,590
208		Unearned Rent Revenue				3,090
275		Mortgage Payable				40,000
301		Common Stock				35,291
429		Rent Revenue				9,550
610		Advertising Expense		606
726		Salaries and Wages Expense		3,345
732		Utilities Expense		946
				$99,521		$99,521

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 DepreciationBuildings, No. 150 Accumulated DepreciationEquipment, 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 $713 of unused supplies on May 31.
3.		Annual depreciation is $2,952 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 $748 are accrued and unpaid at May 31. 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) e) f)