Al Maha Hotel prepares monthly financial statements. Below are listed some selected accounts and their balances on December 30 trial balance before any adjustments have been made for the month of December.

AL MAHA HOTEL

Trial Balance (Selected Accounts)

December 31, 2020

DebitCredit

Supplies................................................................................................................ .............................................................................................................. $ 3,200

Prepaid Insurance................................................................................................................ ....................................................................................................... 3,600

Equipment................................................................................................................ ..................................................................................................... 16,200

Accumulated DepreciationEquipment................................................................................................................ ................................................................................................................ ..................................................................................................... $1,000

Unearned Rent Revenue................................................................................................................ ................................................................................................................ ....................................................................................................... 1,200

Notes Payable................................................................................................................ ................................................................................................................ ..................................................................................................... 20,000

(Note: Debit column does not equal credit column because this is a partial listing of selected account balances)

An analysis of the account balances by the company's accountant provided the following additional information:

1.A physical count of supplies revealed $1,400 on hand on December 31.

2.A two-year life insurance policy was purchased on January 1 for $3,600.

3.The amount of rent received in advance that remains unearned at December 31 is $700.

4.Al Maha Hotel borrowed $20,000 by signing a 10%, one-year note on July 1, 2020.