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The Sandhill Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. SANDHILL HOTEL Trial Balance May
The Sandhill Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. SANDHILL HOTEL Trial Balance May 31, 2022 Debit Credit Cash $ 2,523 Supplies 2,600 Prepaid Insurance 1,800 Land 15,023 Buildings 72,400 Equipment 16,800 Accounts Payable $ 4,723 Unearned Rent Revenue 3,300 Mortgage Payable 38,400 Common Stock 60,023 Rent Revenue 9,000 Salaries and Wages Expense 3.000 Utilities Expense 800 Advertising Expense 500 $115,446 $115,446 Other data: 1. Insurance expires at the rate of $300 per month. A count of supplies shows $1,190 of unused supplies on May 31. 2. 3. (a) Annual depreciation is $3,240 on the building. (b) Annual depreciation is $2,640 on equipment. 4. The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,600 has been earned. 6. Salaries of $770 are accrued and unpaid at May 31. Prepare a retained earnings statement for the month of May. SANDHILL HOTEL Retained Earnings Statement $ $
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