The Sandhill Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. Credit SANDHILL HOTEL Trial Balance May 31, 2022 Debit $2,523 2,600 1,800 Cash Supplies Prepaid Insurance Land 15,023 72,400 Buildings Equipment Accounts Payable 16,800 $4,723 3,300 38,400 60,023 Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense Utilities Expense Advertising Expense 9,000 3,000 800 500 $115.446 $115.446 Other data: 1. 2. 3. Insurance expires at the rate of $300 per month. A count of supplies shows $1,190 of unused supplies on May 31. (a) Annual depreciation is $3,240 on the building. (b) Annual depreciation is $2,640 on equipment. The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) Unearned rent of $2,600 has been earned. Salaries of $770 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. Account Titles and Explanation Debit Credit 1. Insurance Expense 300 Prepaid Insurance 300 2. Supplies Expense 1410 Supplies 1410 3(a). Depreciation Expense 270 Accumulated Depreciation Buildings 270 3(b). Depreciation Expense 220 Accumulated Depreciation Equipment 220 4 Interest Expense 160 Interest Payable 160 5. Unearned Rent Revenue 2600 Rent Revenue 2600 6. Salaries and Wages Expense 770 Salaries and Wages Payable 770 eTextbook and Media List of Accounts (b) 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 Prepaid Insurance Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Interest Payable Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense Utilities Expense Advertising Expense Interest Expense Insurance Expense Supplies Expense Depreciation Expense (c) Prepare an adjusted trial balance on May 31 SANDHILL HOTEL Adjusted Trial Balance Debit Credit $ (21) Prepare an income statement for the month of May. SANDHILL HOTEL Income Statement e Textbook and Media List of Accounts Save for Later Attempts: 0 of 15 used Submit Answer (02) Prepare a retained earnings statement for the month of May. SANDHILL HOTEL Retained Earnings Statement e Textbook and Media List of Accounts Save for Later Attempts: 0 of 15 used Submit Anwer (d3) 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.) SANDHILL HOTEL Balance Sheet Assets S $ > Liabilities and Stockholders' Equity S
