a, b, c

. Unearned me P4-3 The Moto Hotel opened for business on May 1, 2017. The May transactions resulted Prepare adjustments and in a tabular summary, with Mav 1 unadjusted balances shown belowin the first row. The financial statements. 9,000 in the revenue column resulted from Rent Revenue. The $4,300 in the expense (LO 2, 3, 4), AP column includes Salaries and Wages $3,000, Utilities $800, and Advertising $500. on must first be ances to record Liabilities Sal/ Unearn. Sup- Prepd. Depr- Accts. Int. Wag. Rent Mortg. Com Depr.- Stock Rev. Exp DIV. Cash + plies Insur+Land+Bldgs. Bldgs Equip. Equip.- Pay+Pay + Pay dj. Bal. 2.500 + 2,600+ 1.800 + 15,000 + 70,000 0 +16.800 0 4,700+ 0 3,300 + Pay.+ Rev. quity d Earnings (A1) (A2) (A3) (A4) (A5) (A6) Adj. Bal. Instructions (a) Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense 1. Insurance expires at the rate of $450 per month. 2. A count of supplies shows $1,050 of unused supplies on May 31 3. Annual depreciation is $3,600 on the building and $3,000 on equipment. 4 The mortgage interest rate is 6%. (The mortgage was taken out on May l.) 5. Rental services related to unearned rent of $2,500 have been provided 6. Salaries of $900 are accrued and unpaid at May 31 2017. enue at the end of these were g in Unearned 148 4 Accrual Accounting Concepts $11.500 (b) Find the adjusted balance for each column in the tabular summary. Prove th P4-6 Ro expanded accounting equation balances (c) Net G) Net income 3,570 (e) Prepare an income statement and a retained earnings statement for the monthfgood n and a classified balance sheet at May 31 pared th adustments and financial P4-4 Salt Creek Golf Inc. was organized on July 1, 2017. Ouarterly financial stateme are prepared. Information from the unadjusted and adjusted tabular summary on Se tember 30 is shown as follows. The $14,800 in the revenue column includes Sen Revenue: $14,100 and Rent Revenue: $700. The $10,170 in the expense column ino Prepare adjustments and financial P4-4 Salt Creek Golf Inc. was organized on July 1, 2017. Quarterly financial sta statements (LO 2, 3, 4), AP lu Salaries and Wages $8,800, Rent $900, and Utilities $470. + Stockholders' Equih Assets Liabilities Acc Sal. Unearn. Depr- Notes Accts. Wag. Int. Rent Com. Cash Res plies Rent quip. Equip. Pax. Pay.Pay.Pa.Rev. + Stock Accts. Sup- Prepd. Retained E Rev.-Exp 1,200 + 1,800 15,000-0 5,000 + 1,070 + 0 + 0 + 1,000 + 14,000 + 14,800-10170. (A1) (A2) (A3) (A4) hac co