*Problem 3-2A The Skyline Motel opened for business on May 1, 2015. Its trial balance before adjustment on May 31 is as follows. SKYLINE MOTEL Trial Balance May 31, 2015 Debit 3,459 2,108 2,880 14,010 60,480 14,520 101 126 130 140 141 Prepaid Insurance Buildings 201 Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue $ 11,954 3,300 40,000 35,092 11,849 275 301 429 610 726 Salaries and Wages Expense Utilities Expense -102.195 102,195 In addition to those accounts listed 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 $736 of unused supplies on May 31 3. Annual depreciation is $3,024 on the buildings and $1,452 on equipment. 4, The mortgage interest rate is 12%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue has been earned. 6. Salaries of $780 are accrued and unpaid at May 31 Journalize the adjusting entries on May 31. (Credit account titles are automatically indented w No. Date Account Titles and Explanation 1. May 31 Debit Credit 2. May 31 3. May 31 4. May 3:1 5. May 31 6. May 31 Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.) May 31 Supplies No. 126 Date E May 31 Blance May 31 justing Prepaid Insurance No. 130 Date May 31 No. 1 Debit May 31 Buildings No. 14 Debit May 31 mulated D Buildings No. 1 May 31 No. 149 Debit May 31 Balance No. 150 May 31 31 Accounts Payable DateE May 31 Balance Unearned Rent Revenue No. 208 Date Explanation Ref Debit Credit Balance May 31 May 31 Salaries and Wages Payable Balance Adjusting JI No. 212 Date Explanation Debit Ref Credit Balance May 31 Interest Payable Adjusting 01 No. 230 DateExplanation Debit Credit Balance Ref May 31 Adjusting Mortgage Payable No. 275 Ref Date Explanation Debit Credit Balance May 31 Balance Common Stock No. 301 Debit Date Explanation Ref Credit Balance May 31 Balance Rent Revenue No. 429 DateExplanation Debit Credit Balance Re Balance May 31 May 31 Advertising Expense Adjusting 01 No. 610 Debit Credit Date Explanation Balance Ref May 31 Balance Depreciation Expense No. 619 Date Explanation Ref Debit Credit Balance May 31 Adjusting Supplies Expense No. 631 Debit DateExplanation Re Credit Balance May 31 Adjusting Interest Expense No. 718 Date Explanation Balance Ref Debit Credit May 31 Adjusting Insurance Expense No. 722 Credit Date Explanation Ref Debit Balance May 31 Adjusting Salaries and Wages Expense No. 726 Ref Date Explanation Debit Credit Balance May 31 May 31 Utilities Expense Balance Adjusting 01 No. 732 Date Explanation Debit Ref Credit Balance May 31 Balance Prepare an adjusted trial balance on May 31. SKYLINE MOTEL Adjusted Trial Balance May 31, 2015 Desit Credit Prepare an income statement for the month of May 31. SKYLINE MOTEL Income Statement For the Month Ended May 31, 2015 Prepare an retained earnings statement for the month of May 31. SKYLINE MOTEL Retained Earnings Statement For the Month Ended May 31, 2015 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 10 and Stockholders' Equity ilities