Adjusted Entries

1) Prepare adjusting entries using the following information in the General Journal with calculations on the side. a) Depreciation of the house b) Depreciation of the furniture c) Interest on the promissory note d) Recognition of the expired portion of the insurance e) Recognition of a portion of the guest's deposit f) Wages earned during the second half of January amount to $5,120 and will be paid on February 3. g) Cleaning supplies on hand on January 31 amount to $230. h) A gas and electric bill that is received from the city amounts to $740 and is payable by February 5. i) Income taxes are to be accrued at a rate of 30% of income before taxes.

2) Post the adjusting entries on Janurary 31 below to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.

Chart of Accounts Account Number Account Title Normal Balance Account Type Assets 111 117 119 144 145 146 147 148 Cash Prepaid Insurance Cleaning Supplies Furniture Accum Dep - Furniture House Accum Dep House Land Debit Debit Debit Debit Credit Debit Credit Debit Liabilities 212 213 214 215 216 217 Accounts Payable Notes Payable Wages Payable Utilities Payable Rent Received in Advance Interest Payable Income Tax Payable Credit Credit Credit Credit Credit Credit Credit 218 Stockholders Equity 311 312 313 Retained Earnings Capital Stock Dividends Credit Credit Debit Revenue 411 412 Revenue - Rental of Rooms Revenue - Restaurant Credit Credit Expenses 511 512 513 514 515 516 517 518 Advertising Expense Wages Expense Insurance Expense Supplies Expense Utilities Expense Depreciation Expense Interest Expense Income Tax Expense Debit Debit Debit Debit Debit Debit Debit Debit Other 999 Income Summary Credit Date Debit 60.000 Credit 60.000 15.000 35.000 50.000 30.000 30.000 15,000 15.000 6,000 6.000 General Journal Description (Account Name) 2-Jan Cash share capital 2-Jan Land bulding cash 3-Jan Cash note payable 4-Jan Furniture Cash 5-Jan Prepaid Insurance Cash 6-Jan Prepaid Advertisements Cash 7-Jan Cleaning Supplies Cash 15-Jan Wages Expense Cash 16-Jan Cash Unearned Rental Revenue 31-Jan Cash Rental Revenue 31-Jan Cash Restaurant Revenue 31-Jan Divdends Cash 450 450 950 950 4,230 4,230 980 980 8.300 8.300 6,600 6.600 600 600 183.110 183,110 Account 117 119 144 146 148 213 214 216 312 313 411 412 511 Moonlight Bay Inn Trial Balance January 31 Account Title Cash Prepaid Insurance Cleaning Supplies Furniture House Land Notes Payable Wages Payable Rental Revenue - uneamed Shared Capital Dividends Rental Revenue Revenue Restaurant Advertising Expense Balance Debit Credit 28.650 6.000 950 15.000 35.000 15.000 30.000 4,230 980 60.000 600 8.300 6,600 450 Chart of Accounts Account Number Account Title Normal Balance Account Type Assets 111 117 119 144 145 146 147 148 Cash Prepaid Insurance Cleaning Supplies Furniture Accum Dep - Furniture House Accum Dep House Land Debit Debit Debit Debit Credit Debit Credit Debit Liabilities 212 213 214 215 216 217 Accounts Payable Notes Payable Wages Payable Utilities Payable Rent Received in Advance Interest Payable Income Tax Payable Credit Credit Credit Credit Credit Credit Credit 218 Stockholders Equity 311 312 313 Retained Earnings Capital Stock Dividends Credit Credit Debit Revenue 411 412 Revenue - Rental of Rooms Revenue - Restaurant Credit Credit Expenses 511 512 513 514 515 516 517 518 Advertising Expense Wages Expense Insurance Expense Supplies Expense Utilities Expense Depreciation Expense Interest Expense Income Tax Expense Debit Debit Debit Debit Debit Debit Debit Debit Other 999 Income Summary Credit Date Debit 60.000 Credit 60.000 15.000 35.000 50.000 30.000 30.000 15,000 15.000 6,000 6.000 General Journal Description (Account Name) 2-Jan Cash share capital 2-Jan Land bulding cash 3-Jan Cash note payable 4-Jan Furniture Cash 5-Jan Prepaid Insurance Cash 6-Jan Prepaid Advertisements Cash 7-Jan Cleaning Supplies Cash 15-Jan Wages Expense Cash 16-Jan Cash Unearned Rental Revenue 31-Jan Cash Rental Revenue 31-Jan Cash Restaurant Revenue 31-Jan Divdends Cash 450 450 950 950 4,230 4,230 980 980 8.300 8.300 6,600 6.600 600 600 183.110 183,110 Account 117 119 144 146 148 213 214 216 312 313 411 412 511 Moonlight Bay Inn Trial Balance January 31 Account Title Cash Prepaid Insurance Cleaning Supplies Furniture House Land Notes Payable Wages Payable Rental Revenue - uneamed Shared Capital Dividends Rental Revenue Revenue Restaurant Advertising Expense Balance Debit Credit 28.650 6.000 950 15.000 35.000 15.000 30.000 4,230 980 60.000 600 8.300 6,600 450