The Elston Model, Inc. opened for business on May 1, 2008. Its trial balance before adjustment on May 31 is as follows:

npare dung nies po P3-2B The Elston Motel, Inc. opened tor pusiness on May and prepare adjusned trial bal. adjustment on May 31 is as follows. ance and financial statements SO 5, 6, 7) ELSTON MOTEL, INC Trial Balance May 31, 2008 Account Number 2,500 126 Supplies 140 Lodge 149 1,900 15,000 16,800 Prepaid Insurance Furniture Accounts Payable Unearned Rent Mortgage Payable Common Stock Rent Revenue Advertising Expense Salaries Expense Utilities Expense .5,300 3,600 55,000 9,200 311 3,000 1,000 $113,100 $113,100 In addition to those accounts listed on the trial balance, the chart of accounts for Elston Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Lodge, No. 150 Accumulated Depreciation-Furniture, No. 212 Salaries Payable, No. 230 Interest Payable, No. 320 Retained Earnings, No. 619 Depreciation Expense- Lodge, No. 621 Depreciation Expense-Furniture, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense Other data: 1. Insurance expires at the rate of $200 per month. 2. A count of supplies shows $500 of unused supplies on May 31. 3. Annual depreciation is $3,600 on the lodge and $3,000 on furniture. The mortgage interest rate is 12%. (The mortgage was taken out on May 1 .) 5. Unearned rent of $2,500 has been earned. 6. Salaries of $800 are accrued and unpaid at May 31. (a) Journalize the adjusting entries on May 31. c) Adj. trial balance $114,850 (b) (d) Net income $3,850 Ending retained earnings $3,850 Total assets $106,450 (c) Prepare an adjusted trial balance on May 31. (d) Prepare an income statement and a retained carnings statement for the month of May and a balance sheet at May 31