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The Ivanhoe Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. IVANHOE HOTEL Trial Balance May
The Ivanhoe Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.
IVANHOE HOTEL Trial Balance May 31, 2022 | ||||||
---|---|---|---|---|---|---|
Debit | Credit | |||||
Cash | $ 2,613 | |||||
Supplies | 2,600 | |||||
Prepaid Insurance | 1,800 | |||||
Land | 15,113 | |||||
Buildings | 70,000 | |||||
Equipment | 16,800 | |||||
Accounts Payable | $ 4,813 | |||||
Unearned Rent Revenue | 3,300 | |||||
Mortgage Payable | 36,000 | |||||
Common Stock | 60,113 | |||||
Rent Revenue | 9,000 | |||||
Salaries and Wages Expense | 3,000 | |||||
Utilities Expense | 800 | |||||
Advertising Expense | 500 | |||||
$113,226 | $113,226 |
Other data:
1. | Insurance expires at the rate of $360 per month. | |
2. | A count of supplies shows $1,180 of unused supplies on May 31. | |
3. | (a) Annual depreciation is $2,760 on the building. | |
(b) Annual depreciation is $2,160 on equipment. | ||
4. | The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) | |
5. | Unearned rent of $2,670 has been earned. | |
6. | Salaries of $710 are accrued and unpaid at May 31. |
Prepare a retained earnings statement for the month of May.
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