Problem 3-2A (Part Level Submission) The Skyline Motel opened for business on May 1, 2015. Its trial balance before adjustment on May 31 is as follows SKYLINE MOTEL May 31, 2015 $3,481 2,126 101 126 130 140 Prepaid Insurance 12,790 59,280 15,480 11,563 3,210 40,000 35,471 10,216 201 208 275 Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 610 732 $100,460 $100,460 In addition to those accounts listed on the trial balance the chart or accounts for Skyline Moteatso contains the follo ing accounts and account num bers 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. 4, 5. 6. Prepaid insurance is a 1-year policy starting May 1, 2015 A count of supplies shows $710 of unused supplies on May 31 Annual depreciation is $2,964 on the buildings and $1,548 on equipment. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.) Two-thirds of the unearned rent revenue has been earned Salaries of $800 are accrued and unpaid at May 31 12:13 AM Your answer is correct. Prepare an retained earnings statement for the month of May 31. SKYLINE MOTEL Retained Earnings Statement For the Month Ended May 31, 2015 Retained Earnings, May1 TAdd: Wet Income/(Loss Retained Earnings, May 31 206 $4206 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.) SKYLINE MOTEL Balance Sheet May 31, 2015 Assets Liabilities and Stockholders' Equity