Kabul Star Hotel adjusts its accounts on monthly basis. Most guests pay at the time they check out, and the amount collected are credited to Rental Revenue. A few guests pay in advance for rooms and these amounts are credited to Unearned Rental Revenue at the time of receipt. A: Salaries eamed by employees but not paid amount to $20,000. B: As of Dec 31, Kabul Star Hotel has eamed $11,000 rental revenue but has not received any amount yet. C: On Dec 1, a room was rented to a corporation for six months at monthly rental of $5,000. The entire six month rental of $30,000 was collected in advance and credited to Unearned Rental Revenue. D: A Corolla Car to carry guest to and from airport had been rented on Dec 15, at daily rate of $250. No rental payment has yet been made. E: Depreciation on the Hotel's building is based on an estimated useful life of 15 years. The original cost of building was $500,000 and residual value of $50,000 F: A one year fire insurance policy had been purchased on Dec. 1, The premium of $24,000 for entire life of the policy had been paid on Dec. 1 and recorded as Unexpired Insurance. Instructions: 1. Prepare Adjusting entries o Adjusting Entries Credit s 20,000.00 S 11,000.00 S Account Titles Debit a Salaries Expense S 20,000.00 Salaries Payable Accounts Receivable S 11.000.00 Rental Revenue Unearned Rental Revenue S 5,000.00 Rental Revenue a Rent Expense / Hire Expense S 4250.00 Accounts Payable To accrue rent expense of car for 17 dans @ $250 from 15th Dec to 31th Dec e Depreciation Expense Ils 2,500.00 Accumulated Depreciation f Insurance Expense Is 2.000.00 Unexpired Insurance 5,000.00 s 4250.00 s 2,500.00 s 2,000.00 2. Prepare adjusted Trial Balance. 3. Prepare Financial Statements (Balance Sheet & Income Statement). Credit -- 4. Prepare closing entries and prepare after closing trial balance. Kabul Star Hotel Unadjusted Trial Balance for the Month Dec 31, 2019 Items Debit Cash 2,356,000 Unexpired Insurance 24,000 Office Equipment 20,000 Building 500,000 Unearned Rental Revenue Notes Payable Account Payable Z. Masoud's, Capital - 30,000 850,000 20,000 2000,000 Total ($) 2,900,000 2,900,000