P3.2A (LO 2, 3,4) Financial Statement Hank's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. Hank's Hotel Trial Balance May 31, 2020 Credit Debit Account Number $3,400 101 Cash 2,080 2,400 Supplies Prepaid Insurance 126 130 12,000 140 Land 60,000 141 Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 15,000 149 S 4,700 3,300 201 208 40,000 275 41,380 10,300 301 429 600 610 3,300 726 900 732 $99,680 $99,680 In addition to those accounts listed on the trial balance, the chart of accounts for Hank's Hotel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, No. 150 Accu- mulated Depreciation-Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data: 1. Prepaid insurance is a 1-year policy starting May 1, 2020. 2. A count of supplies shows $750 of unused supplies on May 31. 3. Annual depreciation is $3,600 on the buildings and $1,500 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue has been earned. May 31. 6. Salaries of $750 are accrued and unpaid at Instructions May 31 a. Journalize the adjusting entries b. Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.) c. Prepare an adjusted trial balance on May 31 d. Prepare an income statement and an owner's equity statement for the month of May and a balance on sheet at May 31. Instructions a. Journalize the adjusting entries on May 31 b. Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.) c. Prepare an adjusted trial balance on May 31 d. Prepare an income statement and an owner's equity statement for the month of May and a balance sheet at May 31