Solo Hotel

Trail Balance

May 31, 2014

		Debit		Credit
Cash		2768
Supplies		2600
Prepaid Insurance		1800
Land		15268
Buildings		74800
Equipment		16800
Accounts Payable				4968
Unearned Rent Revenue			3300
Mortgage Payable			40,800
Common Stock			60,268
Rent Revenue			9000
Salaries and wages Expense	3000
Utilities Expense	800
Advertising Expense	500
	118,336		118335

Other Data:

1. Insurance expires at the rate of $360 per month.

2. A count of supplies shows $1183 of unused supplies on May 31

3(a)Annual depreciation is $3240 on the building.

3(b) Annual depreciation is $3120 on equipment.

4. The mortgage interest rate is 5%. (the mortgage was taken out on May 1.)

5. The unearned rent of $2601 has been earned

6. Salaries of $740 are accrued and unpaid at May 31.

Problem

1. Journalize the adjusting entries on May 31

2, Prepare a ledger using T-accounts. Enter the trail balance amounts and post the adjusting entries

3. Prepare an Adjusted Trail Balance on may 31

4. Prepare an income statement for the month of May.

5. make a Retained earning statement for the end of may 31, 2014

6. Prepare a classified balance sheet at May 31. (list current assets in order of Liquidity. List property, plant and equipment in order in order of land, buildings and equipment.) Assets/Liabilties and stock holders equity