D2

The Crane Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. CRANE HOTEL Trial Balance May 31, 2022 Debit Credit Cash $ 2,453 2,600 Supplies Prepaid Insurance 1,800 Land 14,953 Buildings 72,400 Equipment 16,800 Accounts Payable $4,653 Unearned Rent Revenue 3,300 Mortgage Payable 38,400 Common Stock 59,953 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 $115,306 $115,306 Other data: 1. Insurance expires at the rate of $450 per month. 2. A count of supplies shows $1,120 of unused supplies on May 31. 3. (a) Annual depreciation is $3,720 on the building. (b) Annual depreciation is $3,120 on equipment. 4. The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,580 has been earned. 6. Salaries of $820 are accrued and unpaid at May 31. (d2) Prepare a retained earnings statement for the month of May. CRANE HOTEL Retained Earnings Statement May 31, 2022 Retained Earnings, May 1 $ Add $