Question
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
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