Problem 4-03A

The Wildhorse Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.

WILDHORSE HOTEL Trial Balance May 31, 2022
		Debit			Credit
Cash		$ 2,443
Supplies		2,600
Prepaid Insurance		1,800
Land		14,943
Buildings		72,400
Equipment		16,800
Accounts Payable					$ 4,643
Unearned Rent Revenue					3,300
Mortgage Payable					38,400
Common Stock					59,943
Rent Revenue					9,000
Salaries and Wages Expense		3,000
Utilities Expense		800
Advertising Expense		500
		$115,286			$115,286

Other data:

1.		Insurance expires at the rate of $450 per month.
2.		A count of supplies shows $1,160 of unused supplies on May 31.
3.		(a) Annual depreciation is $3,600 on the building.
		(b) Annual depreciation is $3,000 on equipment.
4.		The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
5.		Unearned rent of $2,530 has been earned.
6.		Salaries of $830 are accrued and unpaid at May 31.

No. Account Titles and Explanation Debit Credit 1. 2. 3 (a). 3(b). 4. 5. 6. Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (Post entries in the order of journal entries presented in the previous question.) Cash Supplies Prepaid Insurance Land Building Accumulated Depreciation-Building > Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Interest Payable Interest Payable > Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense > Utilities Expense Utilities Expense Advertising Expense Interest Expense Insurance Expense Supplies Expense Depreciation Expense > > Prepare an adjusted trial balance on May 31. WILDHORSE HOTEL Adjusted Trial Balance May 31, 2022 Debit Credit Cash $ $ Supplies Prepaid Insurance Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Rent Revenue Salaries and Wages Payable