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 101 126 130 140 141 149 201 3,471 2,043 Prepaid Insurance 13,380 59,760 14,520 Buildings $11,843 3,120 Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 275 301 429 610 10,621 $100,850 $100,850 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 Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data ildings, No. 150 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation 1. 2. 3. 4, 5. 6. Prepaid insurance is a 1-year policy starting May 1, 2015. A count of supplies shows $744 of unused supplies on May 31 Annual depreciation is $2,988 on the buildings and $1,452 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 $734 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 31 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 Balance May 31 May 31 Prepaid Insurance 01 May 31 May 31 May 31 May 31 May 31 May 31 ialance May 31 05 Accounts Payable No. 201 May 31 Balance Unearned Rent Revenue No. 208 Date Explanation Ref Debit Credit Balance May 31 May 31 Salaries and Wages Payable Balance Adjusting No. 212 Date Explanation Ref Debit Credit Balance May 31 Adjusting No. 230 Interest Payable Credit Date Explanation Ref Balance Debit May 31 Mortgage Payable Adjusting No. 275 Date Explanation Credit Ref Debit Balance May 31 Balance Common Stock No. 301 Credit Balance Date Explanation Ref Debit Balance May 31 No. 429 Rent Revenue Date Explanation Ref Debit Credit Balance May 31 May 31 Advertising Expense May 31 Depreciation Expense Balance Adjusting No. 610 Date Explanation Ref Debit Credit Balance Balance No. 619 Ref Credit Debit DateExplanation Balance Adjusting May 31 Supplies Expense No. 631 Date Explanation Debit Credit Balance Ref May 31 Adjusting No. 718 Interest Expense Date Explanation Debit Ref Credit Balance May 31 Adjusting Insurance Expense No. 722 Date Explanation Credit Balance Ref Debit May 31 Adjusting JI Salaries and Wages Expense No. 726 DateExplanation Debit Credit Balance Ref May 31 May 31 Utilities Expense Balance Adjusting 01 No. 732 Debit Date Explanation Credit Balance Ref May 31 Balance Prepare an adjusted trial balance on May 31. SKYLINE MOTEL Adjusted Trial Balance May 31, 2015 Debit 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 Liabilities and Stockholders' Equity
