The Highland Cove Resort has a May 31 fiscal year end and prepares adjusting entries on a monthly basis. The following trial balance was prepared before recording the May 31 month-end adjustments:

Additional information:
1. The company pays $6,360 for its annual insurance policy on July 31 of each year.
2. A count shows $560 of supplies on hand on May 31, 2017.
3. The buildings have an estimated useful life of 50 years.
4. The furniture has an estimated useful life of 10 years.
5. Two thirds of the unearned revenue has been earned.
6. The mortgage interest rate is 6.5% per year. Interest has been paid to April 1, 2017.
7. Salaries accrued to the end of May were $1,450.
8. The May utility bill of $3,420 is unrecorded and unpaid.
Instructions
(a) Prepare T accounts and enter the unadjusted trial balance amounts.
(b) Prepare and post the monthly adjusting journal entries on May 31.
(c) Prepare an adjusted trial balance at May 31.
(d) Prepare an income statement and a statement of owner's equity for the year ended May 31, and a balance sheet as at May 31, 2017.
TAKING IT FURTHER
Is the owner's capital account on the May 31, 2017, adjusted trial balance the same amount as shown in the May 31, 2017, balance sheet? Why or why not?

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HIGHLAND COVE RESORT Trial Balance May 31,2017 Debit Credit s 17,520 1,590 995 35,000 150,000 Cash Prepaid insurance Supplies Land Buildings Accumulated depreciation-buildings Furniture Accumulated depreciation-furniture Accounts payable Unearned revenue Mortgage payable K. MacPhail, capital K. MacPhail, drawings Rent revenue Depreciation expense nsurance expense Interest expense Repairs expense Salaries expense Supplies expense Utilities expense $47,750 33,000 12,925 8,500 15,000 96,000 85,000 42,735 246,150 5,775 5,830 5,720 14,400 156,710 4,450 37,600 $511,325 $511,325