Problem 4-3A The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31. Credit MOTO HOTEL Trial Balance May 31, 2017 Debit $ 2,523 2,600 1,800 15,023 72,400 16,800 Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense Utilities Expense Advertising Expense $4,723 3,300 38,400 60,023 9,000 3,000 800 500 $115,446 $115,446 Other data: 1. Insurance expires at the rate of $300 per month 2. A count of supplies shows $1,190 of unused supplies on May 31. 3. (a) Annual depreciation is $3,240 on the building. (b) Annual depreciation is $2,640 on equipment. 4. The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,600 has been earned. 6. Salaries of $770 are accrued and unpaid at May 31. Your answer is partially correct. Try again. Journalize the adjusting entries on May 31. (If no entry is required, select "No Entry" for the accoun not indent manually.) No, Account Titles and Explanation Debit Credit 1. Insurance Expense 300 Prepaid Insurance 300 2. Supplies Expense Supplies 3 (a). Depreciation Expense 3,240 Accumulated Depreciation-Buildings 3 (b). Depreciation Expense Accumulated Depreciation Equipment Interest Expense UJI Interest Payable 5. Unearned Rent Revenue 2,600 Rent Revenue 2,600 6. Salaries and Wages Expense 770 Salaries and Wages Payable 770 SHOW LIST OF ACCOUNTS SHOW SOLUTION ork Your answer is partially correct. Try again. Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjust Cash 5/31 Bal. 2 2,523 Supplies 10 a 5/31 Bal. 2,600 5/31 1,190 5/31 Bal. 1,410 Prepaid Insurance 5/31 Bal. 1,800 5/31 300 5/31 Bal. 4 1,500 py Study Land 5/31 Bal. 15,023 5/31 Bal. Building 5/31 Bal. 72,400 Accumulated Depreciation-Building 5/31 3,240 5/31 Bal .. 3,240 Equipment 5/31 Bal. 16,800 Accumulated Depreciation Equipment 5/31 2,640 5/31 Bal. 2.640 Accounts Payable 5/31 Bal. Unearned Rent Revenue 4,723 5/31 2,590 5/31 Bal. 3,300 5/31 Bal. Salaries and Wages Payable 710 770 Interest Payable 5/31 150 150 5/31 Bal. Mortgage Payable 5/31 Bal. 38,400 Common Stock 5/31 Bal. 4 60,023 Rent Revenue 5/31 Bal. 9,000 5/31 5/31 Bal. Study Salaries and Wages Expense 5/31 Bal. 3,000 5/31 770 5/31 Bal. 3,770 Utilities Expense 5/31 Bal. 800 Advertising Expense 5/31 Bal. 500 Interest Expense 5/31 0 150 5/31 Bal 150 Insurance Expense 300 300 Supplies Expense 1.410 Depreciation Espen Depreciation Expense 5/31 3,340 5/31 . 2,640 5/31 Bal. 4 5,980 MOTO HOTEL Adjusted Trial Balance May 31, 2017 Debit Credit Cash 2,523 Prepaid Insurance Supplies 1,190 Equipment 16,800 Buildings 72,400 Land 15,023 Accumulated Depreciation-Building: 3,240 tudy Accumulated Depreciation Equipme 2,640 Accounts Payable 4,723 Interest Payable Salaries and Wages Payable 770 Unearned Rent Revenue 3,300 Mortgage Payable 38,400 Common Stock 60,023 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Interest Expense Supplies Expense 2,600 ities Expense 800 Insurance Expense 300 Depreciation Expense 5,680 Advertising Expen 500
