Current Attempt in Progress The Oriole Hotel opened for business on May 1, 2022. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $ 21,600 in the revenue column resulted from Rent Revenue. The $ 10,320 in the expense column includes salaries and Wages $ 7,200, Utilities $ 1.920, and Advertising $1,200. Assets Prepd. Insur. ! Acc. Depr- Equip.= Land + + Bldgs. Acc. Depr. Bldgs. + Equip. 0 + 40,320 Accts. Pay. Int. + Pay + Cash + Supplies + Bal. 6,000 + 6,240 + 4,320 + 36,000 + 168,000 0 = 11,280 + 0 + (a) Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. 2. 3. Insurance expires at the rate of $ 1,080 per month. A count of supplies shows $ 2,520 of unused supplies on May 31. (a) Annual depreciation is $ 8,640 on the building. (b) Annual depreciation is $ 7.200 on equipment. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) Rental services related to unearned rent of $ 6,000 have been provided. Salaries of $ 2.160 are accrued and unpaid at May 31. 4 5. 6. The Oriole Hotel opened for business on May 1, 2022. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $ 21,600 in the revenue column resulted from Rent Revenue. The $10,320 in the expense column includes salaries and Wages $ 7.200, Utilities $ 1.920, and Advertising $ 1,200. Liabilities Acc. Depr Equip.= Sal./Wages Accts. Pay. Int. + Pay Unearn. Rent Rev. Mortg. Pay Pay. Stockholders' Equity Retained Earnings Com + Stock Rev. Exp. + 144,000 + 21,600 10,320 + + Div 0 = 11.280 + 0 0 + 7,920 + 86,400 0 (a) Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign for parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. 2. 3. Insurance expires at the rate of $1,080 per month. A count of supplies shows $ 2.520 of unused supplies on May 31. (a) Annual depreciation is $8,640 on the building. (b) Annual depreciation is $ 7.200 on equipment. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) Rental services related to unearned rent of $ 6,000 have been provided. Salaries of $ 2,160 are accrued and unpaid at May 31, 4. 5. 6
