The Ivanhoe Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment
Question:
The Ivanhoe Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.
IVANHOE HOTEL Trial Balance May 31, 2022 | ||||||
---|---|---|---|---|---|---|
Debit | Credit | |||||
Cash | $ 2,613 | |||||
Supplies | 2,600 | |||||
Prepaid Insurance | 1,800 | |||||
Land | 15,113 | |||||
Buildings | 70,000 | |||||
Equipment | 16,800 | |||||
Accounts Payable | $ 4,813 | |||||
Unearned Rent Revenue | 3,300 | |||||
Mortgage Payable | 36,000 | |||||
Common Stock | 60,113 | |||||
Rent Revenue | 9,000 | |||||
Salaries and Wages Expense | 3,000 | |||||
Utilities Expense | 800 | |||||
Advertising Expense | 500 | |||||
$113,226 | $113,226 |
Other data:
1. | Insurance expires at the rate of $360 per month. | |
2. | A count of supplies shows $1,180 of unused supplies on May 31. | |
3. | (a) Annual depreciation is $2,760 on the building. | |
(b) Annual depreciation is $2,160 on equipment. | ||
4. | The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) | |
5. | Unearned rent of $2,670 has been earned. | |
6. | Salaries of $710 are accrued and unpaid at May 31. | |
Identify which accounts should be closed on May 31.
Identify which accounts should be closed on May 31.
Cash | select an option ClosedNot Closed | |
---|---|---|
Supplies | select an option ClosedNot Closed | |
Prepaid Insurance | select an option ClosedNot Closed | |
Land | select an option Not ClosedClosed | |
Buildings | select an option Not ClosedClosed | |
Equipment | select an option ClosedNot Closed | |
Accounts Payable | select an option ClosedNot Closed | |
Unearned Rent Revenue | select an option Not ClosedClosed | |
Mortgage Payable | select an option Not ClosedClosed | |
Common Stock | select an option Not ClosedClosed | |
Rent Revenue | select an option Not ClosedClosed | |
Salaries and Wages Expense | select an option ClosedNot Closed | |
Utilities Expense | select an option ClosedNot Closed | |
Advertising Expense | select an option ClosedNot Closed | |
Interest Expense | select an option ClosedNot Closed | |
Insurance Expense | select an option ClosedNot Closed | |
Supplies Expense | select an option ClosedNot Closed | |
Depreciation Expense | select an option Not ClosedClosed |
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119493631
9th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso