The following is the unadjusted trial balance for Sandhill Lodge Ltd. at its year end, May 31, 2021. The company adjusts its accounts monthly. Credit Debit $6,230 12,120 5,210 4,800 114,930 182,400 $ 23,900 36,600 17,700 8,620 17,500 Cash Accounts receivable Supplies Prepaid insurance Land Buildings Accumulated depreciation-building Furniture Accumulated depreciation-furniture Accounts payable Deferred revenue Mortgage payable, due 2024 Common shares Retained earnings Dividends declared Rent income Salaries expense Utilities expense Depreciation expense Interest expense Insurance expense Advertising eynense 138,000 50,000 41,200 1,980 235,040 106,170 23,320 14,310 8,880 6,720 900 14,310 8,880 Depreciation expense Interest expense Insurance expense Advertising expense Income tax expense 6,720 900 7,390 $531,960 $531,960 Additional information: 1. 2. 3 4. 5. 6. An annual insurance policy was purchased for the first time on October 1, 2020, for $11,520 cash. A count of supplies shows $1,222 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 $2,528 per month. An advance payment equal to one month's rent was paid May 25 and credited to Rent Income. On May 31, Sandhill Lodge has earned $1,775 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 $1,667 are unpaid at May 31. Interest on the mortgage payable is $805 for the month of May and due June 1. The May utility bill of $2,315 has not yet been recorded or paid. Additional income tax is estimated to be $1,080. 7. 8. 9. 10. 11. Set up T accounts, enter any opening balances, and post the adjusting journal entries prepared in the above part. (Post entries in the order of journal entries presented in the previous part.) Cash May 31 Bal. 6230 May 31 Adj. 6230 Accounts Receivable May 31 Bal. Supplies Prepaid Insurance Land