Prepare a statement of changes in equity for the year. Note that $3,830 of common shares were issued during the month of May. 
Credit Debit $5.789 11.980 4,720 4,800 113,840 151,200 $ 23.600 34,200 Cash Accounts receivable Supplies Prepaid insurance Land Buildings Accumulated depreciation-building Furniture Accumulated depreciation-furniture Accounts payable Deferred revenue Mortgage payable, due 2024 Common shares Retained earnings Dividends declared Rent income Salaries expense Utilities expense Depreciation expense Interest expense Insurance expense Advertising expense Income tax expense 19.500 8.030 17.500 120.000 60.000 43,880 2.160 200.139 104.140 21,800 13.690 9.410 6.720 1,050 7.150 $492,649 $492.649 Additional information: 1. 2. 3. 4 5. 6. An annual insurance policy was purchased for the first time on October 1, 2020, for $11,520 cash. A count of supplies shows $1.474 of supplies on hand on May 31. The buildings have an estimated useful life of 20 years and straight-line depreciation is applied. The furniture has an estimated useful life of five years and straight-line depreciation is applied. Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An analysis of these bookings indicates that 175 deposits were received and credited to Deferred Revenue. By May 31, 25 of the deposits were earned. On May 25, a local business contracted with Wildhorse Lodge to rent one of its housekeeping units for four months starting June 1, at a rate of $3,036 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Income On May 31, Wildhorse Lodge has earned $1.925 of rent income from customers who are currently staying at the lodge The customers will pay the amount owing only when they check out in early June. Salaries of $1,584 are unpaid at May 31. Interest on the mortgage payable is $700 for the month of May and due June 1. The May utility bill of $2,116 has not yet been recorded or paid. Additional income tax is estimated to be $1,010. 7. 8. 9. 10. 11. Prepare an adjusted trial balance at May 31. WILDHORSELODGE LTD. Adjusted Trial Balance May 31, 2021 Debit Credit Cash $ $ 5789 Supplies 1474 Prepald Insurance 3840 Rent Income 201528 Accounts Receivable 13905 Accounts Payable 10146 Income Tax Payable 1010 Salarles Payable 1584 Income Tax Expense 8160 Utilitles Expense 23916 Interest Payable 700 Salarles Expense 105724 Deferred Revenue 18036 Accumulated Depreciation - Bulldings 24230 Accumulated Depreciation - Furniture 20070 Depreciation Expense 14890 Supplies Expense 3246 Insurance Expense 7680 Buildings 151200 Furniture 34200 Retained Earnings 43880 Dividends Declared 2160 Interest Expense 10110 Advertising Expense 1050 Common Shares 60000 Mortgage Payable 120000 Land 113840 Totals 501184 $ 501184 Prepare a statement of changes in equity for the year. Note that $3,830 of common shares were issued during the month of May. WILDHORSE LODGE LTD. Statement of Changes in Equity Year Ended May 31, 2021 Common Shares Retained Earnings Total Equity Balance, June 1, 2020 $ 60000 $ 43880 $
