Accounting Cycle Review Problem 0-15A The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31. MOTO HOTEL Trial Balance May 31, 2017 Debit Credit Cash $ 2,313 Supplies 2,600 Prepaid Insurance 1,800 Land 14,813 Buildings 67,600 Equipment 16,800 Accounts Payable $ 4,513 Unearned Rent Revenue 3,300 Mortgage Payable 33,600 Common Stock 59,813 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 $110,226 $110,226 Other data: 1. Insurance expires at the rate of $360 per month. 2. A count of supplies shows $1,200 of unused supplies on May 31. 3. (a) Annual depreciation is $3,000 on the building. (b) Annual depreciation is $2,400 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,650 has been earned. 6. Salaries of $690 are accrued and unpaid at May 31. Journalize the adjusting entries on May 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3 (a). 3 (b). 4. 5. 6. Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (Post entries in the order of journal entries presented in the previous question.) Cash Supplies Prepaid Insurance Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Interest Payable Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense Utilities Expense Advertising Expense Interest Expense Insurance Expense Supplies Expense Depreciation Expense Prepare an adjusted trial balance on May 31. MOTO HOTEL Adjusted Trial Balance Debit Credit $ $ $ $ Prepare an income statement for the month of May. MOTO HOTEL Income Statement $ $ $ Prepare a retained earnings statement for the month of May. MOTO HOTEL Retained Earnings Statement $ : $ Prepare a classified balance sheet at May 31. (List current assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment .) MOTO HOTEL Balance Sheet Assets $ $ $ : : $ Liabilities and Stockholders' Equity $ $ $ Identify which accounts should be closed on May 31. Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense Utilities Expense Advertising Expense Interest Expense Insurance Expense Supplies Expense Depreciation Expense