The following is the unadjusted trial balance for Rainbow Lodge Ltd. at its year end, May 31, 2018. The company adjusts its accounts monthly. Prepare a statement of changes in equity for the year. Note that $4,290 of common shares were issued during the month of May.

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The following is the unadjusted trial balance for Rainbow Lodge Ltd. at its y Credit Debit $5,887 Cash 12,600 Accounts receivable Supplies 5,000 Prepaid insurance 4,400 Land 105,560 Buildings 151,200 $ 26,300 Accumulated depreciation-building Furniture 34,500 Accumulated depreciation-furniture 17,800 Accounts payable 8,140 Unearned revenue 16,400 Mortgage payable, due 2021 132,000 Common shares 70,000 Retained earnings 38,290 Dividends declared 2,200 Rent revenue 180,547 Salaries expense 108,100 Utilities expense 21,740 Depreciation expense 14,400 Interest expense 9,180 Insurance expense 6,160 Advertising expense 1,090 Income tax expense 7,460 $489,477 $489,477 Additional information: An annual insurance policy was purchased on October 1, 2017, for $10,560 cash. A count of supplies shows $1,411 of supplies on hand on May 31. 1. 2. 3. 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. 4. Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An 5. analysis of these bookings indicates that 164 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 $2,720 per month. An advance payment equal to one month's rent was 6. paid on May 25 and credited to Rent Revenue. On May 31, Rainbow Lodge has earned $1,831 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. 7. Salaries of $1,448 are unpaid at May 31. 8. Interest on the mortgage payable is $770 for the month of May and due June 1. 9. The May utility bill of $2,116 has not yet been recorded or paid. 10. Additional income tax is estimated to be $980. 11. Prepare an income statement for the year. Show RAINBOW LODGE LTD. Income Statement Year Ended May 31, 2018 2$ $ Prepare a statement of changes in equity for the year. Note that $4,290 of common shares were issued during the month of May. RAINBOW LODGE LTD. Statement of Changes in Equity Year Ended May 31, 2018 Total Equity Retained Earnings Common Shares %24 %24 %24 %24 %24 Prepare a statement of financial position for the year. (List Current Assets in order of liquidity. List Property, plant and equipment in order of land, buildings and furniture.) Show Timer RAINBOW LODGE LTD. Statement of Financial Position May 31, 2018 Assets 2$ Liabilities and Shareholders' Equity