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 folows. LINE MOTEL Trial Balance May 31, 2015 101 130 141 Cash $3,481 2,126 2,340 12,790 59.280 15,480 Prepaid Insurance 11,563 3,210 40,000 35,471 201 Accounts Payable Unearned Rent Revenue Mortgage Payable Common Steck Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 275 301 610 3,379 732 $100,460 $100,460 In addition to those accounts Ested on the trial balance, the chart of accounts for Skyline Motel 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, 2015 2. A count of supplies shows $710 of unused supplies on May 31 3. Annual depreciation is $2,964 on the buildings and $1,548 on equipment 4- The mortgage interest rate is 12%. (The mortgage was taken out on May 1.) S. Two-thirds of the unearned rent revenue has been earned 6. Salaries of $800 are accrued and unpaid at May 31 L] Your answer is correct Journalize the adjusting entries on May 31. (Credit account titles area No. Date Account Titles and Explanation 1. May 31 Insurance Expense Debit Credit 95 repaid Insurance 95 ) 4161 ) 2. May 31Supplies Expens 1416 upplies 3. May 31 bepreciation Expense 1376/ 47 ccumulated Depreciation-Buildings ccumulated Depreciation-Equipment 129 7400 ) May 31Interest Expense) 4. 20 nterest Payable May 31 Unearned Rent Revenue ent Revenue 5. 140 140 y 31 Salaries andwagesExpense) BOO alaries and Wages Payable Your answer is correct. Prepare an adjusted trial balace on May 31. SKYLINE MOTEL Adjusted Trial Balance May 31, 2015 Debit Credit shl $3481 10 upplies 2149 % 12790 % repaid Insurance Land uildings 59280 ! Accumulated Depreciation-Buildings 47 15480 uipment Accumulated Depreciation-Equipment Accounts Payable Unearned Rent Revenue Interest Pavable 11563 070 400 alaries and Wages Payable 0000 12356 76 ' Mortgage Payable Common Stock 5471 ent Revenue vertising Expense Salaries and Wages Expense 4179 Depreciation Expense 00 % nterest Expensel ties Expensel 195 nsurance Expense 41 upplie nse $102036 s102036 | Your answer is correct Prepare an income statement for the month of May 31. SKYLINE MOTEL Income Statement For the Month Ended May 31, 2015 evenues Rent Revenue $12356 xpenses $640 dvertising Expense Salaries and Wages Expense 4179 Utilities Expense Insurance Expense Supplies Expense Depreciation Expense Interest Expense Total Expenses 195 416 376 150 206 Net Income (Loss) Prepare an retained earnings statement for the month of May 31. SKYLINE MOTEL Retained Earnings Statement For the Month Ended May 31, 2015