Question
Problem-4: Mac's Motel opened for business on May 1, 2017. Its trial balance before adjustment on May 31 is as follows. MAC'S MOTEL Trial Balance
Problem-4: Mac's Motel opened for business on May 1, 2017. Its trial balance before adjustment on May 31 is as
follows.
MAC'S MOTEL
Trial Balance
May 31, 2017
Account Number Debit Credit
101 Cash $ 3,500
126 Supplies 2,080
130 Prepaid Insurance 2,400
140 Land 12,000
141 Buildings 60,000
149 Equipment 15,000
201 Accounts Payable $ 4,800
208 Unearned Rent Revenue 3,300
275 Mortgage Payable 40,000
301 Owner's Capital 41,380
429 Rent Revenue 10,300
610 Advertising Expense 600
726 Salaries and Wages Expense 3,300
732 Utilities Expense 900
$99,780 $99,780
Other data:
1. Prepaid insurance is a 1-year policy starting May 1, 2017.
2. A count of supplies shows $750 of unused supplies on May 31.
3. Annual depreciation is $3,000 on the buildings and $1,500 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 $750 are accrued and unpaid at May 31.
TO DO
Journalize the adjusting entries on May 31.
djusted trial balance
closing entries
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