The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31. Credit MOTO HOTEL Trial Balance May 31, 2017 Debit Cash $ 2,593 Supplies 2,600 Prepaid Insurance 1,800 Land 15,093 Buildings 72.400 Equipment 16.800 Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense 3,000 Utilities Expense 800 $4,793 3.300 38,400 60,093 9,000 ZURRI PREVETTE Salaries and Wages Expense Utilities Expense Advertising Expense 3,000 800 500 $115,586 $115,586 Other data: 1. 2. 3 Insurance expires at the rate of $360 per month. A count of supplies shows $1,150 of unused supplies on May 31. (a) Annual depreciation is $3,600 on the building. (b) Annual depreciation is $3,000 on equipment The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) Unearned rent of $2,630 has been earned. Salaries of $750 are accrued and unpaid at May 31. 4. 5. 6. Journalize the adjusting entries on May 31. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) No. Debit Credit Account Titles and Explanation Insurance Expense 1. 360 Prepaid Insurance 360 2. 3(a). Depreciation Expense 300 300 Accumulated Depreciation Buildings Accumulated Depreciation Equipment 3 (b). 250 250 Interest Expense 160 Interest Payable 160 5. Cash 2630 Uneared Service Revenue 2630 5. Cash 2630 Uneared Service Revenue 2630 6. Salaries and Wages Expense 750 750 Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (Post entries in the order of Journal entries presented in the previous question.) Cash Supplies Supplies Prepaid Insurance Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Interest Payable Interest Payable Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense Salaries and Wages Expense Utilities Expense Advertising Expense Interest Expense Insurance Expense Supplies Expense Depreciation Expense Prepare an adjusted trial balance on May 31. MOTO HOTEL Adjusted Trial Balance May 31, 2017 Debit Credit MOTO HOTEL Adjusted Trial Balance May 31, 2017 Debit Credit Cash 2,593 $ Supplies 2,600 Prepaid Insurance 1,800 Land 15,093 Buildings 72.400 Accumulated Depreciation-Buildings Equipment 16,800 Accounts Payable 4,793 Unearned Rent Revenue 3.300 38.400 Mortgage Payable Mortgage Payable 38,400 Interest Payable Salaries and Wages Payable Common Stock 60,093 Rent Revenue 9,000 3,000 Salaries and Wages Expense Utilities Expense 800 Advertising Expense 500 Insurance Expense Supplies Expense Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Interest Expense HI Interest Expense $ $ Prepare an income statement for the month of May. MOTO HOTEL Income Statement MOTO HOTEL Income Statement Prepare a retained earnings statement for the month of May. MOTO HOTEL Retained Earnings Statement $ Prepare a classified balance sheet at May 31. (List current assets in order of liquidity List Property, Plant and Equipment in order of Land, Buildings and Equipment.) MOTO HOTEL Balance Sheet Assets 1 D Prepare a classified balance sheet at May 31. (List current assets in order of liquidity. List Property, Plant and Equipment in order of Land, Bulldings and Equipment.) MOTO HOTEL Balance Sheet Assets $ $ Liabilities and Stockholders' Equity d at NI Liabilities and Stockholders' Equity Identify which accounts should be closed on May 31. Cash $ Identify which accounts should be closed on May 31. Cash Identify which accounts should be closed on May 31. Cash Supplies Prepaid Insurance Land > Buildings Equipment Accounts Payable Unearned Rent Revenue Common Stock Utilities Expense Advertising Expense Interest Expense Insurance Expense > > Supplies Expense Buildings Equipment Accounts Payable Unearned Rent Revenue Common Stock Utilities Expense Advertising Expense Interest Expense Insurance Expense > > Supplies Expense