Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Identify which accounts should be closed on May 31.

Identify which accounts should be closed on May 31.

Cash

select an option ClosedNot Closed

Supplies

select an option ClosedNot Closed

Prepaid Insurance

select an option ClosedNot Closed

Land

select an option Not ClosedClosed

Buildings

select an option Not ClosedClosed

Equipment

select an option ClosedNot Closed

Accounts Payable

select an option ClosedNot Closed

Unearned Rent Revenue

select an option Not ClosedClosed

Mortgage Payable

select an option Not ClosedClosed

Common Stock

select an option Not ClosedClosed

Rent Revenue

select an option Not ClosedClosed

Salaries and Wages Expense

select an option ClosedNot Closed

Utilities Expense

select an option ClosedNot Closed

Advertising Expense

select an option ClosedNot Closed

Interest Expense

select an option ClosedNot Closed

Insurance Expense

select an option ClosedNot Closed

Supplies Expense

select an option ClosedNot Closed

Depreciation Expense

select an option Not ClosedClosed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Carl S. Warren, William B. Tayler

16th Edition

0357715225, 9780357715222

More Books

Students also viewed these Accounting questions