HIGHLAND COVE RESORT

Trial Balance

May 31, 2024

DebitCredit

Cash$ 17,520

Prepaid insurance1,590

Supplies995

Land35,000

Building150,000

Accumulated depreciationbuilding$ 47,750

Furniture33,000

Accumulated depreciationfurniture12,925

Accounts payable8,500

Unearned revenue15,000

Mortgage payable96,000

K. MacPhail, capital85,000

K. MacPhail, drawings42,735

Service revenue246,150

Depreciation expense5,775

Insurance expense5,830

Interest expense5,720

Repairs expense14,400

Salaries expense156,710

Supplies expense4,450

Utilities expense37,600

$511,325$511,325

Additional information:

1. The company pays $6,360 for its annual insurance policy on July 31 of each year.

2. Account shows $560 of supplies on hand on May 31, 2024.

3. The building has an estimated useful life of 50 years.

4. The furniture has an estimated useful life of 10 years.

5. Services related to two-thirds of the unearned revenue have been performed.

6. The mortgage interest rate is 6.5% per year. Interest has been paid to April 30, 2024.

7. Salaries accrued to the end of May were $1,450.

8. The May utility bill of $3,420 is unrecorded and unpaid.

Instructions:

1. Prepare T accounts and enter the unadjusted trial balance amounts.

2. Prepare and post the monthly adjusting entries on May 31.

3. Prepare an adjusted trial balance at May 31.

4. Prepare an income statement and a statement of owners equity for the year ended May 31, and a balance sheet as at May 31, 2024.