The following is the unadjusted trial balance for Sunland Lodge Ltd. at its year end, May 31, 2021. The company adjusts its accounts monthly Credit Debit $5,887 12,600 5,000 4,400 105,560 151,200 $ 26,300 34,500 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 17,800 8,140 17,500 132,000 70,000 38,290 2,200 179,447 Salaries expense Utilities expense Depreciation expense Interest expense Insurance expense Advertising expense Income tax expense 108,100 21,740 14,400 9,180 6,160 1,090 7,460 $489,477 $489,477 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 $1,411 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 Sunland 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 paid on May 25 and credited to Rent Income. On May 31, Sunland Lodge has earned $1,831 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 $1,448 are unpaid at May 31. Interest on the mortgage payable is $770 for the month of May and due June 1. The May utility bill of $2,116 has not yet been recorded or paid. Additional income tax is estimated to be $980. 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 Accounts Receivable Supplies Prepaid Insurance Land Buildings Accumulated Depreciation - Buildings Furniture Accumulated Depreciation - Furniture Accounts Payable Salaries Payable Interest Payable Income Tax Payable Deferred Revenue Mortgage Payable Common Shares Common Shares Retained Earnings Dividends Declared Rent Income Salaries Expense Utilities Expense Utilities Expense Interest Expense Insurance Expense Advertising Expense Supplies Expense Supplies Expense Depreciation Expense Income Tax Expense