Practice Problem 1 Sunland's Motel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. SUNLAND'S MOTEL Trial Balance May 31, 2020 Account Number Debit 126 $3/600 2,050 1.800 14 000 61.00 15.600 Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Uneamed Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense $4.00 3,000 40.000 41.200 14.650 650 610 726 732 $103,750 $103.7 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 Accumulated 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 $800 of unused supplies on May 31. Annual depreciation is $3,708 on the buildings and $1,560 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) S Two-thirds of the unearned rent revenue has been earned. 6 Salaries of $700 are accrued and unpaid at May 31. Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Ne Dule A n d Explaine Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. May 31 Insurance Expense Prepaid Insurance 2. May 31 Supplies Expense Supplies 3. May 31 Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment 4. May 31 Interest Expense Interest Payable 5. May 31 Unearned Rent Revenue Rent Revenue 6. May 31 Salaries and Wages Expense Salaries and Wages Payable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.) Cash Date May 31 Balance 3500 May 31 Bence 2050 May 31 Adjusting 300 Prepaid lewe Date Explanati Balance May 31 1800 May 31 Adjusting Land Explanatis Ref. Debit May 31 Balance 14000 No 14 Date Explanation Rel. Dit Credit Balance May 31 61800 Accumulated Depreciation Hall Date Explanation Rel. Det Adjusting May 31 Equipment Date Explanati Ref. Debit Cred Balance May Balance Accumulated Depreciation Equipe Date Explanation Rel. Debit Card Balance May 31 Accounts Payable Explanation May 31 Balance Ret. De Cre Learned Real Rese Date Explanation Race May 31 Bilance May 31 Salaries and Wages Page Bate Explanati Ref. Da May 31 Adjusting laterest Payable Date Explanatic Ref Debt May 31 Asing Mortgage Payah Date Explanati Ref Debit Credit Balance May 31 G ar'Capital | Date Explanatie Reb Deh Crede Balance Reel R Date Explanatic May 31 May 31 Austing Advertising Date Explanation Ret De Credit Balance May 31 Balance Depreciation Expense Date Explanation May 31 Adjusting Rel. Debit Credit Balance Supplies Expo Date Explanation Ref. Debit Credit Balance May 31 Interest Expense No. 718 Balance Date Explanation RelDe C redit May 31 Adjusting leverance Expense Date Explanation Ret Debit Credit Balance May 31 Austing Salaries and Wages Expense Ne 736 Date Explanation Ref Debit Credit Balance May 31 May 31 Adjusting Explanation Balance Bule May 31 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TE Prepare an adjusted trial balance on May 31. SUNLAND'S MOTEL Adjusted Trial Balance Totals Prepare an income statement for the month of May. SUNLAND'S MOTEL Income Statement SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare an owner's equity statement for the month of May. SUNLAND'S MOTEL Owner's Equity Statement SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare a balance sheet at May 31. (List Assets in order of liquidity. List Property, plant and Equipment in order of Land, Buildings and Equipment.) SUNLAND'S MOTEL Balance Sheet Assets Liabilities and Owner's Equity Click if you would like to Show Work for this question: Open Show Work