The following is the unadjusted trial balance for Ivanhoe Lodge Ltd. at its year end, May 31, 2021. The company adjusts its accoun monthly. Credit Cash Accounts receivable Supplies Prepaid insurance Land Debit $5,961 10,710 4,770 4,400 96,540 184,800 $ 22,200 Buildings Accumulated depreciation-building Furniture Accumulated depreciation-furniture Accounts payable 32,400 19,600 8,400 17,500 120,000 Deferred revenue 70,000 Mortgage payable, due 2024 Common shares Retained earnings Dividends declared 40,600 2,090 Rent income 207,811 Salaries expense Utilities expense Depreciation expense Interest expense Insurance expense Advertising expense Income tax expense 101,510 25,620 13,750 9,690 6,160 960 6.750 $506,111 $506,111 Additional information: 1. 2. 3. 4. 5. 6. An annual insurance policy was purchased for the first time on October 1, 2020, for $10,560 cash. A count of supplies shows $1,320 of supplies on hand on May 31. The buildings have an estimated useful life of 20 years and straight-line depreciation is applied. The furniture has an estimated useful life of five years and straight-line depreciation is applied. Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An analysis of these bookings indicates that 175 deposits were received and credited to Deferred Revenue. By May 31, 25 of the deposits were earned On May 25, a local business contracted with Ivanhoe Lodge to rent one of its housekeeping units for four months, startin June 1, at a rate of $2,994 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Income. On May 31, Ivanhoe Lodge has earned $1,881 of rent income from customers who are currently staying at the lodge. The customers will pay the amount owing only when they check out in early June. Salaries of $1,556 are unpaid at May 31. Interest on the mortgage payable is $700 for the month of May and due June 1. The May utility bill of $2,150 has not yet been recorded or paid. Additional income tax is estimated to be $1,020. 7. 8. 9. 10. 11. Prepare a statement of income for the year. IVANHOE LODGE LTD. Statement of Income Year Ended May 31, 2021 $ $ $ e Textbook and Media List of Accounts Save for Later Attempts: 0 of 2 used Submit