Here are some helpful suggestions for each part of this problem:

part a. You are doing adjusting entries for the month of May, therefore be sure to read the facts closely as you prepare each adjusting journal entry. For example in item # 3 it states that the "annual depreciation" on the building is $3,600 and the annual depreciation on equipment is $3,000. Therefore, for the one month of May, your depreciation amount for the building is $3,600/12 = $300. For the equipment it is $3,000/12 = $250.

In item #6 it states Salaries of $900 are "accrued and unpaid" at May 31st. The way this is phrased may be confusing; all they are really saying is: $900 of salaries have been earned by employees in May, but have not yet been paid. This is similar to the example I used in my Chapter 4 Introduction module.

part b. First set up "T" accounts using the balances given in the Trial Balance from the problem. Next, post your adjusting entries from part a. above. With the balances updated from your posting of adjusting entries, you're now ready to prepare the Adjusted Trial Balance as required in part c.

part d. I suggest you do two things: (1) review page 172 illustration 4-27 showing an Adjusted Trial Balance and the flow of information into the Income Statement and the Retained Earnings Statement. (2) review page 173 illustration 4-28 showing the flow of information from the Adjusted Trial Balance into the Balance Sheet.

Also remember in part d. you are to prepare a "Classified Balance Sheet" .

part e. Just list the accounts to be closed, you do Not need to prepare closing entries.

Prepare adjusting eutries, adjusted trial bulance, and financial statements. (L0 2 3, 4), N P4-3A The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31. Other data: 1. Insurance expires at the rate of $450 per month. 2. A count of supplies shows $1,050 of unused supplies on May 31 . 3. Annual depreciation is $3,600 on the building and $3,000 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Uneamed rent of $2,500 has been eamed. 6. Salaries of $900 are accrued and unpaid at May 31. Instructions (a) Journalize the adjusting entries on May 31. (b) Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (c) Prepare an adjusted trial balance on May 31. (d) Prepare an income statement and a retained earnings statement for the month of May and a classified balance sheet at May 31. (e) Identify which accounts should be closed on May 31 . Prepare adjusting eutries, adjusted trial bulance, and financial statements. (L0 2 3, 4), N P4-3A The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31. Other data: 1. Insurance expires at the rate of $450 per month. 2. A count of supplies shows $1,050 of unused supplies on May 31 . 3. Annual depreciation is $3,600 on the building and $3,000 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Uneamed rent of $2,500 has been eamed. 6. Salaries of $900 are accrued and unpaid at May 31. Instructions (a) Journalize the adjusting entries on May 31. (b) Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (c) Prepare an adjusted trial balance on May 31. (d) Prepare an income statement and a retained earnings statement for the month of May and a classified balance sheet at May 31. (e) Identify which accounts should be closed on May 31