Hank's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. HANK'S HOTEL Trial Balance May 31, 2020 Credit Account Number 101 126 130 140 Debit $ 3,400 2,080 2,400 12,000 60,000 15,000 141 149 201 208 275 301 429 610 726 732 Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense $ 4,700 3,300 40,000 41,380 10,300 600 3,300 900 $99,680 $99,680 In addition to those accounts listed on the trial balance, the chart of accounts for Hank's Hotel 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: 3 1. Prepaid insurance is a 1-year policy starting May 1, 2020. 2. A count of supplies shows $750 of unused supplies on May 31. Annual depreciation is $3,600 on the buildings and $1,500 on equipment. 4. The mortgage at an annual interest rate is 6%. (The mortgage was taken out on May 1.) 5. Two-thirds of the uneamed rent revenue has been earned. 6. Salaries of $750 are accrued and unpaid at May 31 (a) Your answer is correct. Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually No. Date Account Titles and Explanation Debit Credit 1. May 31 Insurance Expense 200 Prepaid Insurance 200 2. May 31 Supplies Expense 1330 Supplies 1330 Supplies 1330 3. May 31 Depreciation Expense 425 Accumulated Depreciation-Buildings 300 Accumulated Depreciation Equipment 125 4. May 31 Interest Expense 200 Interest Payable 200 5. May 31 Unearned Rent Revenue 2200 Rent Revenue 2200 6. May 31 Salaries and Wages Expense 750 Salaries and Wages Payable 750 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 Date No. 101 Balance Explanation Ref. Debit Credit May 31 Balance 34001 Supplies Date Explanation Ref. No. 126 Balance Debit Credit May 31 Balance 2,080 May 31 Adjusting 31 1330 750 No. 130 Prepaid Insurance Date Explanation Ref. Debit Credit Balance 3 May 31 Balance 2,400 May 31 Adjusting J1 200 2,200 Land Date No. 140 Balance Explanation Ref. Debit Credit May 31 Balance 12.000 Buildings Date No. 141 Balance Explanation Ref. Debit Credit May 31 Balance 60,000 No. 142 Accumulated Depreciation Buildings Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 300 300 Equipment Date No. 149 Balance Explanation Ref. Debit Credit May 31 Balance 15,000 Accumulated Depreciation Equipment Date Explanation No. 150 Balance Ref. Debit Credit May 31 Adjusting J1 125 125 Accounts Payable Date Explanation No. 201 Balance Ref. Debit Credit May 31 Balance 4,700 Unearned Rent Revenue Date Explanation No. 208 Balance Ref. Debit Credit May 31 Balance 3,300 May 31 Adjusting 11 2,200 1,100 Salaries and Wages Payable Date Explanation No. 212 Balance Ref. Debit Credit May 31 Adjusting J1 750 750 Interest Payable Date Explanation No. 230 Balance Ref. Debit Credit J1 200 200 May 31 Adjusting Mortgage Payable Date Explanation No. 275 Ref. Debit Credit Balance 40,000 May 31 Balance Owner's Capital Date Explanation No. 301 Ref. Debit Credit Balance May 31 Balance 41,380 Rent Revenue Date Explanation No. 429 Balance Ref. Debit Credit May 31 Balance 10,300 May 31 Adjusting J1 2,200 12,500 Advertising Expense Date Explanation No. 610 Ref. Debit Credit Balance May 31 Balance 600 Depreciation Expense Date Explanation No. 619 Balance Ref. Debit Credit May 31 Adjusting 31 425 425 Supplies Expense Date Explanation No. 631 Ref. Debit Credit Balance May 31 Adjusting J1 1,330 1,330 Interest Expense Date Explanation No. 718 Ref. Debit Credit Balance May 31 Adjusting J1 200 200 Insurance Expense Date Explanation No. 722 Balance Ref. Debit Credit May 31 Adjusting J1 200 200 Salaries and Wages Expense Date Explanation No. 726 Ref. Debit Credit Balance May 31 Balance 3,300 UOLE LAPIallaLIVI INGI UCUIL WIEC Dalam UC May 31 Adjusting J1 200 200 No. 722 Insurance Expense Date Explanation Ref. Debit Credit Balance May 31 Adjusting 11 200 200 Salaries and Wages Expense Date Explanation No. 726 Balance Ref. Debit Credit May 31 Balance 3,300 May 31 Adjusting J1 750 4,050 Utilities Expense Date Explanation No. 732 Ref. Debit Credit Balance May 31 Balance 900 Prepare an adjusted trial balance on May 31. HANK'S HOTEL Adjusted Trial Balance May 31, 2020 Debit Credit > Cash 3, 400 Supplies 750 Prepaid Insurance 2,200 10000 Land 12,000 Buildings 60,000 Equipment 15,000 Accumulated Depreciation Equipment 125 Accumulated Depreciation-Buildings III 300 Accounts Payable 4,700 Accounts Payable 4,700 Interest Payable 200 Unearned Rent Revenue 1,100 Mortgage Payable 40,000 Owner's Capital 41,380 Rent Revenue 12,500 Advertising Expense adid Tilltid 600 Salaries and Wages Expense 4050 Tutilities Expense > 900 Insurance Expense 200 s Supplies Expense 1,330 Depreciation Expense 425 Interest Expense 200 Salaries and Wages Expense 4050 Utilities Expense 900 Insurance Expense 200 Supplies Expense 1,330 Depreciation Expense 425 Interest Expense 200 Salaries and Wages Payable 750 Totals 101,055 101,055 Prepare an income statement for the month of May. HANK'S HOTEL Income Statement For the Month Ended May 31, 2020 Revenues Rent Revenue 12,500 Expenses Salaries and Wages Expense 4,050 Utilities Expense 900 Supplies Expense 1,330 Advertising Expense 600 Insurance Expense 200 Depreciation Expense 425 Interest Expense 200 Insurance Expense 200 Depreciation Expense 425 Interest Expense 200 Total Expenses 705 Net Income / (Loss) 14.95 Your answer is partially correct. Try again. Prepare an owner's equity statement for the month of May. HANK'S HOTEL Owner's Equity Statement For the Month Ended May 31, 2020 X Owner's Capital, May 31 41,380 Add X Revenues 12,500 Expenses 200 Net Income (Loss) 120 In addition to those accounts listed on the trial balance, the chart of accounts for Hank's Hotel 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: 2 1 Prepaid insurance is a 1-year polley starting May 1, 2020. A count of supplies shows $750 of unused supplies on May 31, 3. Annual depreciation is $3,600 on the buildings and $1,500 on equipment. The mortgage at an annual interest rate is 6%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue has been earned. Salaries of $750 are accrued and unpaid at May 31. 4. 6. Hank's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. HANK'S HOTEL Trial Balance May 31, 2020 Account Number Debit Credit 101 126 130 $3,400 2,080 2,400 12,000 60,000 15,000 140 141 149 201 Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 208 275 $4,700 3,300 40,000 41,380 10,300 301 429 610 600 726 732 3,300 900 $99,680 $99,680