... 20 III View Policies Current Attempt in Progress The following is the unadjusted trial balance for Pharoah Lodge Ltd. at its year end, May 31, 2021. The company adjusts its accounts monthly Debit Credit Cash $6,564 Accounts receivable 11.160 Supplies 5,330 Prepaid insurance 4,600 Land 100,120 183.600 $22.700 Buildings Accumulated depreciation-building Furniture Accumulated depreciation-furniture Accounts payable Deferred revenue 36,600 20.100 8,880 17.500 Mortgage payable, due 2024 132.000 Common shares 60,000 Accumulated depreciation--furniture 20,100 Accounts payable 8,880 Deferred revenue 17,500 Mortgage payable, due 2024 132,000 Common shares 60,000 Retained earnings 45.720 Dividends declared 1,830 Rent income 2p8,994 102,550 25,800 Salaries expense Utilities expense Depreciation expense Interest expense 14,550 9,120 Insurance expense 6,440 930 Advertising expense Income tax expense 6,700 $515,894 $515,894 Additional information: 1. 2. 3. 4. 5. 6. An annual insurance policy was purchased for the first time on October 1, 2020, for $11,040 cash A count of supplies shows $1,310 of supplies on hand on May 31. The buildings have an estimated useful life of 20 years and straight-line depreciation is applied. The furniture has an estimated useful life of five years and straight-line depreciation is applied. Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An analysis of these bookings indicates that 175 deposits were received and credited to Deferred Revenue. By May 31, 25 of the deposits were earned On May 25, a local business contracted with Pharoah Lodge to rent one of its housekeeping units for four months, starting June 1, at a rate of $2,682 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Income. On May 31, Pharoah Lodge has earned $1,645 of rent income from customers who are currently staying at the lodge. The customers will pay the amount owing only when they check out in early June Salaries of $1,650 are unpaid at May 31. Interest on the mortgage payable is $770 for the month of May and due June 1 The May utility bill of $2,157 has not yet been recorded or paid. Additional income tax is estimated to be $1.020. 7. 8. 9. 10. 11 MadalAl Prepare adjusting journal entries for the month. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar If no entry is required, select "No Entry for the account titles and enter for the amounts.) No Date Account Titles and Explanation Debit Credit 1 May 31 Insurance Expert 920 Prepa dintre 920 2 31 Supplies 4020 Supplies 4020 3. 31 Depressione 10 4 31 Deprecatione 320 Decante 5 31 Defend MacBook Au ... /20 6. 31 Rent Income 2682 Deferred Revenue 2682 7 31 Accounts Receivable 1645 Rent Income 16:45 8. 31 Salaries Expense 1650 Salaries Payable 1650 Starles Payable 9. 31 Interest Expense 270 Interest Payable 770 10. 31 Utilities Expense 1020 Accounts Payable 1020 11 31 Income Tax Expense 1020 Income To Payable 1020 Set up T accounts, enter any opening balances, and post the adjusting journal entries prepared in the above part. (Post ent- in the order of journal entries presented in the previous part.) Cash Accounts Receivable Supplies Prepaid Insurance MacBook ... 20 Prepaid Insurance Land Buildings Accumulated Depreciation - Buildings : Furniture MacBook AiD a ... Furniture Accumulated Depreciation - Furniture Accounts Payable . . . Salaries Payable . MacBook Air Salaries Payable : Interest Payable Income Tax Payable Deferred Revenue MacBOOK AIR Mortgage Payable Common Shares Retained Earnings Dividends Declared Rent Income MacBook Air D TO 13 bil 7 3 $ 4 % 5
