The following is the unadjusted trial balance for Sandhill Lodge Ltd. at its year end, May 31, 2021. The company adjusts its accounts monthly. Debit Credit Cash $6.305 11.830 4,430 4.300 112.540 162.000 Accounts receivable Supplies Prepaid insurance Land Buildings Accumulated depreciation-building Furniture Accumulated depreciation-furniture Accounts payable Deferred revenue Mortgage payable. due 2024 $ 26.800 32.400 19.900 8.110 17.500 126,000 17,500 126,000 Mortgage payable, due 2024 Common shares Retained earnings Dividends declared 60,000 45,490 1.820 190.745 100.570 22.870 Rent income Salaries expense Utilities expense Depreciation expense Interest expense Insurance expense Advertising expense Income tax expense 13.210 8.710 6.020 1.060 6.480 $494,545 $494,545 Additional information: 1. 2. 3. 5. 6. An annual insurance policy was purchased for the first time on October 1, 2020, for $10,320 cash. A count of supplies shows $1.463 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 Sandhill Lodge to rent one of its housekeeping units for four months, starting June 1. at a rate of $3.040 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Income. On May 31. Sandhill Lodge has earned $1,776 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 $1,503 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 $2.168 has not yet been recorded or paid. Additional income tax is estimated to be $1,010. 7. 8. 9. 10. 11. 10. Interest on the mortgage payable is $735 for the month of May and due June 1. The May utility bill of $2,168 has not yet been recorded or paid. Additional income tax is estimated to be $1.010. 11. (a) Your answer is partially correct. Prepare adjusting journal entries for the month. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) HI n.to Set up T accounts, enter any opening balances, and post the adjusting journal entries prepared in the above part. (Post the order of journal entries presented in the previous part.) Cash May 31 Bal. 6.305 Accounts Receivable Supplies Prepaid Insurance V Land Buildings 9. Accumulated Depreciation - Buildings v Furniture Accumulated Depreciation - Furniture 9 Accounts Payable 2 Salaries Payable Interest Payable Income Tax Payable