Chapter 3 - Adjusting the Accounts P3.2 Prepare adjusting entries, post, and prepare adjusted trial balance and financial statements. Lazy River Resort opened for business on May 1, 2020. Its trial balance before adjustment on May In addition to those accounts listed on the trial balance, the chart of accounts for Lazy River Resort 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 750 of unused supplies on May 31 . 3. Annual depreciation is 3,600 on buildings and 1,500 on equipment. 4.The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue is recognized as revenue. 6. Salaries of 750 are accrued and unpaid at May 31 . Instructions (A) Journalize the adjusting entries on May 31 . B) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (C) Prepare an adjusted trial balance on May 31 . (D) Prepare an income statement for the month of May 31 . (E) Prepare a retained earnings statement for the month of May 31 . (F) Prepare a statement of financial position as of May 31. PROBLEM 3.2 (Continued) (C) Prepare an adjusted trial balance on May 31. (Round answers to 0 decimal places, e.g. 5,275.) (D) Prepare an income statement for the month of May 31. (Round answers to 0 decimal places, e.g. 5,275.) (E) Prepare a retained earnings statement for the month of May 31. (List items that increase retained earnings first. Round answers to 0 decimal places, e.g. 5,275.) (F) Prepare a statement of financial position as of May 31. (List Property, Plant and Equipmen in order of Land. Buildinqs and Equipment. List Current Assets in the reverse order of 1 Chapter 3 - Adjusting the Accounts P3.2 Prepare adjusting entries, post, and prepare adjusted trial balance and financial statements. Lazy River Resort opened for business on May 1, 2020. Its trial balance before adjustment on May In addition to those accounts listed on the trial balance, the chart of accounts for Lazy River Resort 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 750 of unused supplies on May 31 . 3. Annual depreciation is 3,600 on buildings and 1,500 on equipment. 4.The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue is recognized as revenue. 6. Salaries of 750 are accrued and unpaid at May 31 . Instructions (A) Journalize the adjusting entries on May 31 . B) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (C) Prepare an adjusted trial balance on May 31 . (D) Prepare an income statement for the month of May 31 . (E) Prepare a retained earnings statement for the month of May 31 . (F) Prepare a statement of financial position as of May 31. PROBLEM 3.2 (Continued) (C) Prepare an adjusted trial balance on May 31. (Round answers to 0 decimal places, e.g. 5,275.) (D) Prepare an income statement for the month of May 31. (Round answers to 0 decimal places, e.g. 5,275.) (E) Prepare a retained earnings statement for the month of May 31. (List items that increase retained earnings first. Round answers to 0 decimal places, e.g. 5,275.) (F) Prepare a statement of financial position as of May 31. (List Property, Plant and Equipmen in order of Land. Buildinqs and Equipment. List Current Assets in the reverse order of 1