D3

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 Supplies 2.600 Prepaid Insurance 1.800 Land 14.953 Buildings 72.400 Equipment 16,800 $ 4,653 Accounts Payable 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. (d) Prepare a classified balance sheet at May 31 (List current assets in order of liquidity List Property Plant and Equipment in order of Land, Buildings and Equipment) CRANE HOTEL Balance Sheet Assets Liabilities and Stockholders' Equity