Prepare adjusting entries, usted trial balance, and fancial statements (LO 2. 4). AP P4-3A The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31. GLS Credit MOTO HOTEL Trial Balance May 31, 2017 Debit Cash $ 2,500 Supplies 2,600 Prepaid Insurance 1,800 Land 15,000 Buildings 70,000 Equipment 16,800 Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 $113,000 $ 4.700 3,300 36.000 60,000 9,000 $113,000 Other data: 1. Insurance expires at the rate of $450 per month. 2. A count of supplies shows $1,050 of unused supplies on May 31. 3. Annual depreciation is $3,600 on the building and $3,000 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,500 has been earned. 6. Salaries of $900 are accrued and unpaid at May 31. Instructions (a) Journalize the adjusting entries on May 31. (b) Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjust- ing entries. (c) Prepare an adjusted trial balance on May 31. (d) Prepare an income statement and a retained earnings statement for the month of May and a classified balance sheet at May 31. (e) Identify which accounts should be closed on May 31. $11,500 (c) Rent revenue Tot. adj. trial balance (d) Net income $114,630 $3,570 Prepare adjusting entries and financial statements, identify