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 3

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
Retained Earnings Statement
For the Month Ended May 31, 2017
Retained earnings, May 1	$0
Add: Net income / (Loss) [Refer income statement]	$3,890
Retained Earnings, May 31	$3,890

Journalize the adjusting entries on May31. (If no entry is required, select No Entry for the a amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit Insurance Expense 450 Prepaid Insurance 450 Supplies Expense 1,530 Supplies 1,530 3 (a). Depreciation Expense 320 Accumulated Depreciation-Buildings 320 3 (b). Depreciation Expense 270 ccumulated Depreciation-Equipment 270 4 Interest Expense 140 Interest Payable 140 Unearned Rent Revenue 2,630 Rent Revenue 2,630 6 Salaries and Wages Expense 730 Salaries and Wages Payable 730 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 classified balance sheet at May 31. (List current assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment) MOTO HOTEL Balance Sheet Assets Liabilities and Stockholders' Equity