The Moto Hotel opened for business on May 1st, 2017. Here is a trial balance before adjustment on May 1st 2017. Here is a trial balance before adjustment on May 31st

	Debit	Credit
Cash	2500
supplies	2600
prepaid insurance	1800
land	15000
buildings	70000
equipment	16800
accounts payable		4700
unearned rent revenue		3300
mortgage payable		36000
common stock		60,000
rent revenue		9000
salaries and wages expense	3000
utilities expense	800
advertising expense	500
	113,000	113,000

Other data:

1. insurance expires at the rate of $450/month.

2. a count of supplies shows $1050 of unused supplies on may 31

3. a. annual depreciation is $3600 on the building

b. annual depreciation is $3,000 on equipment.

4. the mortgage interest rate is 6% (The mortgage was taken out on May 1).

5. unearned rent of $2500 has been earned

6. salaries of $900 are accrued and unpaied at May 31.

Part 1:

JOurnalize the adjusting entries on May 31.

Part 2:

Prepare a ledger using T-Accounts. Enter the trial balance amounds and post the adjusting entries.

Part 3:

Prepare an adjusted trial balance on May 31.

Part 4:

Prepare an Income Statement for the month of May.

Part 5: prepare a retained earnings statement for the MOnth of May.

Part 6: Prepare a classified Balance Sheet at May 31.

Part 7: identify which accounts should be closed on May 31.