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Current Attempt in Progress The Highland Cove Resort has a May 31 fiscal year end and prepares adjusting entries on a monthly basis. The following

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Current Attempt in Progress The Highland Cove Resort has a May 31 fiscal year end and prepares adjusting entries on a monthly basis. The following trial balance was prepared before recording the May 31 month-end adjustments: HIGHLAND COVE RESORT Trial Balance May 31, 2021 Debit Credit Cash $17,040 Prepald Insurance 1.440 Supplies 960 Land 30,000 Buildings 150,000 Accumulated Depreciation-Buildings $47,750 Furniture 33.000 Accumulated Depreciation - Furniture 12.925 Accounts Payable 8,000 Unearned Revenue 16,500 Mortgage Payable 86,000 K. MacPhail, Capital 87.000 K. MacPhail Drawings 42.670 Service Revenue 240.730 Depreciation Expense 5.775 Insurance Expense 5.280 Interest Expense 4.730 Repairs Expense 14.400 Service Revenue 240.730 Depreciation Expense 5,775 Insurance Expense 5,280 Interest Expense 4,730 Repairs Expense 14,400 Salaries Expense 152,560 Supplies Expense 4,650 Utilities Expense 36,400 $498,905 $498,905 Additional information: 1. The company pays $5,760 for its annual insurance policy on July 31 of each year. 2 A count shows $570 of supplies on hand on May 31, 2021. 3. The building has an estimated useful life of 50 years. 4. The furniture has an estimated useful life of 10 years. 5. Two thirds of the unearned revenue have been earned. 6. The mortgage interest rate is 6.0% per year. Interest has been paid to May 1, 2021 7 Salarles accrued to the end of May were $1,650, 8. The May utility bill of $3,540 is unrecorded and unpald. Post the monthly adjusting Journal entries on May 31. (Post entries in the order of journal entries presented in the previous part) Cash May 31 17040 Prepaid Insurance May 31 1.440 Bal Furniture May 31 32.000 Accumulated Depreciation Furniture May 31 12.925 Accumulated Depreciation-Furniture May 31 12.925 V Accounts Payable May 31 8.000 Mortgage Payable May 31 86.000 Unearned Revenue May 31 16.500 Interest Payable Salaries Payable K. MacPhail Capital May 31 87000 K. MacPhail Drawings May 31 42 670

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