at Ivanhoe's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. IVANHOE'S HOTEL Trial Balance May 31, 2020 Account Number Debit Credit 101 126 130 140 $ 3,500 2,000 1,800 14,000 62,400 14,400 141 149 201 208 Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 275 $ 4,900 3,000 40,000 41,400 13,800 301 429 610 726 732 650 3,400 950 $103,100 $103,100 Iddition to those ACCOUntelisted on the balance the charcount for Ivanhoel Hoteles con bollow OCT EN ?o In addition to those accounts listed on the trial balance, the chart of accounts for Ivanhoe's Hotel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, No. 150 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data: 1. Prepaid insurance is a 1-year policy starting May 1, 2020. 2. A count of supplies shows $800 of unused supplies on May 31. 3. Annual depreciation is $3,744 on the buildings and $1,440 on equipment. 4. The mortgage at an annual interest rate is 6%. (The mortgage was taken out on May 1.) 5 Two-thirds of the unearned rent revenue has been earned. Salaries of $800 are accrued and unpaid at May 31. 6. ... ( A ? 9 Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when No. Date Account Titles and Explanation Debit Credit 1. May 31 Insurance Expense 150 Prepaid Insurance 150 2. May 31 Supplies Expense 1,200 Supplies 1,200 3. May 31 Depreciation Expense 3,744 x Accumulated Depreciation-Buildings 3,744 X Accumulated Depreciation Equipment 1,440 1,440 4. May 31 Interest Expense 200 Interest Payable 200 MAJ ? 9 ment 3. May 31 Depreciation Expense 3,744 x > Accumulated Depreciation-Buildings 3,744 x X Accumulated Depreciation-Equipment 1,440 1,440 4. May 31 Interest Expense 200 Interest Payable 200 5. May 31 Unearned Rent Revenue 2,000 Rent Revenue 2,000 6. May 31 Salaries and Wages Expense 800 Salaries and Wages Payable 800 SHOW LIST OF ACCOUNTS SHOW SOLUTION OCT 2 A ? 9 Prepare a ledger using the three-column form of account. Enter the trial balance amounts into entries posted in the previous part of the question.) Cash Date Explanation No. 101 Balance Ref. Debit Credit May 31 Balance 3,500 Supplies No. 126 Date Explanation Ref. Debit Credit Balance x May 31 Balance 800 May 31 Adjusting J1 Prepaid Insurance Date Explanation No. 130 Ref. Debit Credit Balance May 31 Balance 1,650 x May 31 Adjusting J1 Land No. 140 May 31 Adjusting J1 Land No. 14 Balance Date Explanation Ref. Debit Credit May 31 Balance 14,000 Buildings Date No. 141 Balance Explanation Ref. Debit Credit May 31 Balance 62,400 Accumulated Depreciation Buildings Date Explanation No. 142 Balance Ref. Debit Credit May 31 Adjusting J1 3,744 No. 149 Equipment Date Explanation Ref. Debit Credit Balance May 31 Balance 14,400 Accumulated Depreciation Equipment Date Explanation Ref. No. 150 Balance Debit Credit OCT 2 17 A Accounts Payable Date Explanation Ref. Debit No. 201 Balance Credit May 31 Balance 4,900 Unearned Rent Revenue Date Explanation Ref. Debit No. 208 Balance Credit May 31 Balance 1,000 May 31 Adjusting J1 Salaries and Wages Payable Date Explanation Ref. No. 212 Balance Debit Credit May 31 Adjusting J1 800 Interest Payable Date Explanation No. 230 Balance Ref. Debit Credit May 31 Adjusting J1 200 Mortgage Payable Date Explanation Ref. No. 275 Balance Debit Credit 101 OOT 17 A) ? 9 ment Mortgage Payable Date Explanation No. 275 Balance Ref. Debit Credit May 31 Balance 40,000 Owner's Capital Date Explanation No. 301 Ref. Debit Credit Balance May 31 Balance 41,400 Rent Revenue Date Explanation Ref. No. 429 Balance Debit Credit May 31 Balance 15,800 May 31 Adjusting J1 Advertising Expense Date Explanation Ref. Debit No. 610 Balance Credit May 31 Balance 650 Depreciation Expense Date Explanation No. 619 Ref. Debit Credit Balance X May 31 Adjusting J1 1,200 Gamle me 922 Min 621 OCT 2 20 D T'lay I Hujusung 1,200 Supplies Expense Date Explanation No. 631 Balance Ref. Debit Credit x May 31 Adjusting J1 5,180 No. 718 Interest Expense Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 200 Insurance Expense Date Explanation No. 722 Balance Ref. Debit Credit May 31 Adjusting J1 150 Salaries and Wages Expense Date Explanation No. 726 Ref. Debit Credit Balance May 31 Balance 4,200 May 31 Adjusting J1 Utilities Expense Date Explanation Ref. No. 732 Balance Debit Credit x May 31 Balance 950 022 OCT 2 20 Prepare an adjusted trial balance on May 31. IVANHOE'S HOTEL Adjusted Trial Balance For the Month Ended May 31, 2020 Debit Credit Cash 3,500 Supplies 800 > Prepaid Insurance 1,650 Land 14,000 > Buildings 62,400 DI Accumulated Depreciation-Buildings 3,744 Equipment TOHO 14,400 X Accumulated Depreciation-Equipment 1,4401 Accounts Payable 4,900 922 OCT 2 20 mt Mortgage Payable 40,000 > Owner's Capital DUL 41,400 Rent Revenue 15,800 > Advertising Expense 650 Supplies Expense 1,200 Depreciation Expense 5,184 Interest Expense 200 Insurance Expense 150 Salaries and Wages Expense 4,200 Utilities Expense 950 Totals 109,284 109,284 SHOW LIST OF ACCOUNTS SHOW SOLUTION Prepare an income statement for the month of May. IVANHOE'S HOTEL Income Statement For the Month Ended May 31, 2020 v Revenues Rent Revenue 15,800 $ Expenses Advertising Expense 650 Supplies Expense 1,200 Depreciation Expense 5,184 Interest Expense 200 > Insurance Expense 150 Salaries and Wages Expense 4,200 922 OCT 2 20 ment Supplies Expense 1,200 > Depreciation Expense 5,184 Interest Expense 200 > Insurance Expense 150 Salaries and Wages Expense 4,200 Utilities Expense 950 Expenses 12,534 IX Net Income / (Loss) 3,266 $ Prepare an owner's equity statement for the month of May. IVANHOE'S HOTEL Owner's Equity Statement For the Month Ended May 31, 2020 Owner's Capital, May 1 v 41,400 Y X M Owner's Capital, May 31 v 3,266 X Net Income / (Loss) 44,666 SHOW LIST OF ACCOUNTS SHOW SOLUTION Your answer is partially correct. Try again. Prepare a balance sheet at May 31. (List Assets in order of liquidity. List Property, Plant and Equipment in IVANHOE'S HOTEL Balance Sheet May 31, 2020 Assets Cash 3,500 Supplies 800 Prepaid Insurance 1,650 Land 14,000 Buildings 62,400 Less Accumulated Depreciation-Buildings (3,744) 58,656 Equipment 14,400 Less Accumulated Depreciation-Equipment (1,440) 12,960 Total Assets 91,566 OCT 2 20 AJ ? ment Liabilities and Owner's Equity Accounts Payable 4,900 Unearned Rent Revenue 1,000 > Salaries and Wages Payable 800 Interest Payable 200 Mortgage Payable 40,000 > Total Liabilities 46,900 Owner's Equity Owner's Capital 44,666 Total Liabilities and Owner's Equity 91,566 Click if you would like to Show Work for this question: Open Show Work 922 OCT 20