Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 3-02A a-d (Part Level Submission) Hank's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as

image text in transcribed
image text in transcribed
image text in transcribed
Problem 3-02A a-d (Part Level Submission) 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 Account Number Credit 101 Cash 126 130 Debit $ 3,400 2,080 2,400 12,000 60,000 15,000 140 141 149 201 208 Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 275 $ 4,700 3,300 40,000 41,380 10,300 301 429 610 600 726 732 3,300 900 $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 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. 2. 3. Prepaid insurance is a 1-year policy starting May 1, 2020. A count of supplies shows $750 of unused supplies on May 31. Annual depreciation is $3,600 on the buildings and $1,500 on equipment. The mortgage at an annual interest rate is 6%. (The mortgage was taken out on May 1.) Two-thirds of the unearned rent revenue has been earned. Salaries of $750 are accrued and unpaid at May 31. 4. 5. 6. (a) Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit No. Date Account Titles and Explanation 1. May 31 2. May 31 No. Date Account Titles and Explanation Debit Credit 1. May 31 2. May 31 3. May 31 4. May 31 5. May 31 6. May 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: John J. Wild

9th Edition

1260728773, 9781260728774

More Books

Students also viewed these Accounting questions