Question
he Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31. MOTO HOTEL Trial Balance May
he Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.
MOTO HOTEL Trial Balance May 31, 2017 | ||||||
Debit | Credit | |||||
Cash | $ 2,333 | |||||
Supplies | 2,600 | |||||
Prepaid Insurance | 1,800 | |||||
Land | 14,833 | |||||
Buildings | 67,600 | |||||
Equipment | 16,800 | |||||
Accounts Payable | $ 4,533 | |||||
Unearned Rent Revenue | 3,300 | |||||
Mortgage Payable | 33,600 | |||||
Common Stock | 59,833 | |||||
Rent Revenue | 9,000 | |||||
Salaries and Wages Expense | 3,000 | |||||
Utilities Expense | 800 | |||||
Advertising Expense | 500 | |||||
$110,266 | $110,266 |
Other data:
1. | Insurance expires at the rate of $450 per month. | |
2. | A count of supplies shows $1,070 of unused supplies on May 31. | |
3. | (a) Annual depreciation is $3,840 on the building. | |
(b) Annual depreciation is $3,240 on equipment. | ||
4. | The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) | |
5. | Unearned rent of $2,630 has been earned. | |
6. | Salaries of $730 are accrued and unpaid at May 31. |
Trial Balance | ||
May 31, 2017 | ||
Debit | Credit | |
Cash | $ 2,333.00 | |
Supplies | $ 1,070.00 | |
Prepaid Insurance | $ 1,350.00 | |
Land | $ 14,833.00 | |
Buildings | $ 67,600.00 | |
Equipment | $ 16,800.00 | |
Accounts Payable | $ 4,533.00 | |
Unearned Rent Revenue | $ 670.00 | |
Mortgage Payable | $ 33,600.00 | |
Common Stock | $ 59,833.00 | |
Rent Revenue | $ 11,630.00 | |
Salaries and Wages Expense | $ 3,730.00 | |
Utilities Expense | $ 800.00 | |
Advertising Expense | $ 500.00 | |
Depreciation Expense | $ 590.00 | |
Supplies expense | $ 1,530.00 | |
Insurance expense | $ 450.00 | |
Interest expense | $ 140.00 | |
Salaries and wages payable | $ 730.00 | |
Interest payable | $ 140.00 | |
Accumulated depreciation-Equipment | $ 270.00 | |
Accumulated depreciation-Building | $ 320.00 | |
Total | $ 1,11,726.00 | $ 1,11,726.00 |
Moto Hotel Income Statement For the period May 31, 2017 Revenue Rent revenue Expenses Salaries and wages expense Utilities Expense Advertising Expense Depreciation Expense Supplies Expense Insurance Expense Interest expense 11,630 3,730 800 500 590 1,530 450 140 Net Income Before taxes Income tax expense Income from continuing operations 7,740 3,890 3,890 Prepare a retained earnings statement for the month of May. MOTO HOTEL Retained Earnings Statement For the Month Ended May 31, 2017
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started