Problem-2 P3-2B The Mound View Motel opened for business on May 1, 2010. Its trial balance before adjustment on May 31 is as follows. MOUND VIEW MOTEL Trial Balance May 31, 2010 Account Number Debit Credit 101 Cash $ 3,500 126 Supplies 2,200 130 Prepaid Insurance 2,280 140 Land 12,000 141 Lodge 60,000 149 Furniture 15,000 201 Accounts Payable $ 4,800 209 Unearned Rent Revenue 3,300 275 Mortgage Payable 35,000 301 Kevin Henry, Capital 46,380 429 Rent Revenue 10,300 610 Advertising Expense 600 726 Salaries Expense 3,300 732 Utilities Expense 900 $99,780 $99,780 Other data: 1. Prepaid insurance is a 1-year policy starting May 1, 2010. 2. A count of supplies shows $750 of unused supplies on May 31. 3. Annual depreciation is $3,000 on the lodge and $2,700 on furniture. 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 $750 are accrued and unpaid at May 31. Instructions (a) Journalize the adjusting entries on May 31. (b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries. (Use J1 as the posting reference.) (e) Prepare an adjusted trial balance on May 31. (d) Prepare an income statement and an owner's equity statement for the month of May and a balance sheet at May 31