The following is the unadjusted trial balance for Rainbow Lodge Ltd. at its year end, May 31, 2018. The company adjusts its accounts monthly. Credit Debit $6,978 11,600 5,140 4,550 110,640 182,400 $ 22,700 Cash Accounts receivable Supplies Prepaid insurance Land Buildings Accumulated depreciation-building Furniture Accumulated depreciation-furniture Accounts payable Unearned revenue Mortgage payable, due 2021 Common shares Retained earnings Dividends declared 30,600 20,500 7,350 17,100 126,000 60,000 40,420 1,970 220,348 Rent revenue Salaries expense Utilities expense Depreciation expense 100,860 21,700 14,510 Interest expense 8.690 Interest expense Insurance expense Advertising expense Income tax expense 8,690 6,370 1,020 7,390 $514,418 $514,418 Additional information: 1. 2. 3. 4. 5. 6. An annual insurance policy was purchased on October 1, 2017, for $10,920 cash. A count of supplies shows $1,456 of supplies on hand on May 31. The building have an estimated useful life of 20 years and straight-line depreciation is applied. The furniture have 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 171 deposits were received and credited to Unearned Revenue. By May 31, 25 of the deposits were earned. On May 25, a local business contracted with Rainbow Lodge to rent one of its housekeeping units for four months, starting June 1, at a rate of $2,948 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Revenue. On May 31, Rainbow Lodge has earned $1,887 of rent revenue from customers who are currently staying at the inn. The customers will pay the amount owing only when they check out in early June. Salaries of $1,612 are unpaid at May 31. Interest on the mortgage payable is $735 for the month of May and due June 1. The May utility bill of $2,325 has not yet been recorded or paid. Additional income tax is estimated to be $960. 7. 8. 9. 10. 11. v (a) Prepare adjusting journal entries for the month. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the Prepare adjusting journal entries for the month. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all am nearest dollar. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No Date Account Titles and Explanation Debit Credit 1 May 31 2 31 3. 31 4. 31 5. 31 6. 31 7. 31 7. 31 8. 31 9. 31 10. 31 11, 31