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Box hotel opened for business on April 1,2022. Its trial balance before adjustments on April 30 is as follows. Box Hotel Trial Balance 30-April-22
Box hotel opened for business on April 1,2022. Its trial balance before adjustments on April 30 is as follows. Box Hotel Trial Balance 30-April-22 Dr. Cr. Cash Supplies Prepaid Insurance Land Buildings Equipment 35,040 520 2,700 15,000 45,000 25,000 Account Payable 4,800 Unearned Rent Revenue Mortgage Payable 5,300 35,000 Share Capital-Ordinary 73,500 Rent Revenue 10,260 Advertising Expense 1,450 Salaries and Wages Expense 3,300 Utilities Expense 850 128,860 128,860 Other data: 1. Prepaid insurance is a 1-year policy starting April 1, 2022. 2. A count of supplies shows $320 of unused supplies on April 30. 3. Annual Depreciation is $ 1,500 on the buildings and $2,000 on equipment. 4. The mortgage interest rate is 15% (The mortgage was taken out on April 1) 5. Unearned rent revenue of $2,200 is recognized. 6. Invoices representing $1,000 of services performed (rentals) during the month have not been recorded as of April 30. Instructions: a. Prepare and post the adjusting entries on April 30. (50 points) b. Prepare an adjusted trial balance on April 30. (10 points) c. Prepare an income statement and a retained earnings statements for the month of April and a statement of financial position at April 30. (40 points)
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