chapter3

The Wildhorse Co. opened for business on May 1, 2022. Its trial balance before adjustment on May 31 is as follows. Wildhorse Co. Trial Balance May 31, 2022 Account Number Debit Credit 101 Cash $ 3,920 126 Supplies 2,336 130 Prepaid Insurance 2,688 140 Land 13,440 141 Buildings 67,200 149 Equipment 15,840 200 Notes Payable $ 44,800 201 Accounts Payable 12,528 208 Unearned Rent Revenue 3,696 311 Common Stock 39,200 429 Rent Revenue 10,576 610 Advertising Expense 672 726 Salaries and Wages Expense 3,696 732 Utilities Expense 1,008 $110,800 $110,800 In addition to those accounts listed on the trial balance, the chart of accounts for Wildhorse Co. 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, 2022. A count of supplies shows $840 of unused supplies on May 31. 2. 3. Annual depreciation is $3,360 on the buildings and $1,584 on equipment. The note payable interest rate is 12%. (The note was taken out on May 1 and will be repaid along with interest in 2 years.) 4. 5. Two-thirds of the unearned rent revenue has been earned. 6. Salaries and wages of $885 are unpaid and unrecorded at May 31. Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Date Account Titles and Explanation Debit Credit 1. May 31 2. May 31 3. May 31 4. May 31 May 5. 31 6. May 31 eTextbook and Media List of Accounts Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.) Cash No. 101 Date Explanation Ref Debit Credit Balance May 31 Balance Supplies No. 126 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting 11 Prepaid Insurance No. 130 Date Explanation Ref Debit Credit Balance May 31 Balance v May 31 Adjusting J1 Land No. 140 Date Explanation Ref Debit Credit Balance May 31 Balance v Buildings No. 141 Date Explanation Ref Debit Credit Balance May 31 Balance v Accumulated Depreciation Buildings No. 142 Date Explanation Ref Debit Credit Balance May 31 Adjusting J1 Equipment No. 149 Date Explanation Ref Debit Credit Balance May 31 Balance Accumulated Depreciation Equipment No. 150 Date Explanation Ref Debit Credit Balance May 31 Adjusting J1 Notes Payable No. 200 Date Explanation Ref Debit Credit Balance May 31 Balance Accounts Payable No. 201 Date Explanation Ref Debit Credit Balance May 31 Balance Unearned Rent Revenue No. 208 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J1 Salaries and Wages Payable No. 212 Date Explanation Ref Debit Credit Balance May 31 Adjusting 31 Interest Payable No. 230 Date Explanation Ref Debit Credit Balance May 31 Adjusting 31 Common Stock No. 311 Date Explanation Ref Debit Credit Balance May 31 Balance Rent Revenue No. 429 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting 31 Advertising Expense No. 610 Date Explanation Ref Debit Credit Balance May 31 Balance v Depreciation Expense No. 619 Date Explanation Ref Debit Credit Balance May 31 Adjusting 31 No. 631 Supplies Expense Date Explanation Ref Debit Credit Balance May 31 Adjusting 31 Interest Expense No. 718 Date Explanation Ref Debit Credit Balance May 31 Adjusting J1 Insurance Expense No. 722 Date Explanation Ref Debit Credit Balance May 31 Adjusting J1 Salaries and Wages Expense No. 726 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting J1 Utilities Expense No. 732 Date Explanation Ref Debit Credit Balance May 31 Balance v Prepare an adjusted trial balance on May 31. Wildhorse Co. Adjusted Trial Balance Debit Credit Totals $ Prepare an income statement for the month of May 31. Wildhorse Co. Income Statement eTextbook and Media List of Accounts Prepare a retained earnings statement for the month of May 31. Wildhorse Co. Retained Earnings Statement $ $ Prepare a balance sheet at May 31. (List Assets in order of liquidity. List Property, plant and equipment in order of land, buildings and equipment.) Wildhorse Co. Balance Sheet Assets $ Liabilities and Stockholders' Equity $