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 Trial Balance May 31, 2015 3,592 130 140 Prepaid Insurance 2,784 12,220 60,000 15,240 Accounts Payable Unearned Rent Revenue Mortgage Payable 11,261 3,120 35,138 11,134 Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 610 551 911 732 $100,653 $100,653 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, 201s 2. A count of supplies shows $770 of unused supplies on May 31 3. Annual depreciation is $3,000 on the buildings and $1,524 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 $771 are accrued and unpaid at May 31 Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation 1. May 31 Debit Credit 2. May 31 3. May 31 4. May 31 S. 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 May 31 May 31 May 31 Prepaid Insurance Balance May 31 Balance May 31 No. 140 May 31 Balance May 31 May 31 May 31 May 31 Accounts Payable May 31 Balance Unearned Rent Revenue No. 208 Date Explanation Debit Balance Ref May 31 May 31 Salaries and Wages Payable Balance Adjusting No. 212 Debit Date Explanation Ref Credit Balance May 31 Interest Payable Adjusting No. 230 Date Explanation Debit Credit Balance Ref May 31 Mortgage Payable Adjusting No. 275 Date Explanation Debit Credit Ref Balance Balance May 31 No. 301 Common Stock Date Explanation Ref Debit Credit Balance May 31 Balance Rent Revenue No. 429 Date Explanation Credit Balance Ref Debit May 31 May 31 Advertising Expense Balance Adjusting No. 610 Date Explanation Ref Debit Credit Balance May 31 Depreciation Expense Balance No. 619 Date Explanation Credit Ref Debit Balance May 31 Adjusting Supplies Expense No. 631 Debit DateExplanation Ref Credit Balance May 31Adjusting No. 718 Interest Expense Ref Date Explanation Debit Credit Balance May 31 Insurance Expense Adjusting JI No. 722 Date Explanation Ref Debit Credit Balance May 31 Adjusting No. 726 Salaries and Wages Expense Date Explanation Balance Ref Debit Credit May 31 May 31 Utilities Expense Balance Adjusting JI No. 732 Debit Credit Date Explanation Ref Balance 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