The Sheridan Hotel opened for business on May 1, 2017. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $9,000 in the revenue column resulted from Rent Revenue. The $4,300 in the expense column includes Salaries and Wages $ 3,000, Utilities $ 800, and Advertising $ 500. Assets Liabilities +Stockholders' Equity Unearn. Acc. Depr Acc. Retained Earnings Cash +Supplies+Insur. + LandBldgs.- Bldgs. Equip. Equip.Pay. +Pay+Pay. Rev. Pay +Stock +Rev.Exp-Div 0+ 3,300 38,400 59,9739,000-4,300 0 Prepd Depr Accts.Int. Sal./Wages Rent. Mortg. Com. Bal. 2,473+ 2,6001,80014,97372,400 0+16,800 0-4,673+ Your answer is partially correct Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. Insurance expires at the rate of $ 360 per month. 2. Acount of supplies shows $1,170 of unused supplies on May 31 3. (a) Annual depreciation is $3,720 on the building. (b) Annual depreciation is $3,120 on equipment. 4 The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) 5. Rental services related to unearned rent of $2,540 have been provided 6. Salaries of $780 are accrued and unpaid at May 31. Assets Prepd. Insur Cash Supplies Land Bldgs Bal. Adj. 1. Adj. 2. Adj. 3a. Adj. 3b. 2,473 2,600 1,800 14,973 72,400 360 1430 Adj.5 Adj.6. Adj. Bal. 2,473 1,170 1,440 14,973 72,400 Acc. Depr Equip. Int. Pay Acc. Depr- Bldgs Pay Equip. 0 4,673 0 16,800 0 310 260 160 160 260 4,673 310 16,800 Liabilities Stockholders' Equi Re Sal./Wages Pay Unearn. Rent. Rev. Mortg. Pay Com. Stock Rev. 0 3,300 38,400 59,973 9,000 2,540 2,540 780 780 760 38,400 59,973 11,540 Sheridan Hotel Income Statement For the Month Ended May 31, 2017 Revenues Expenses Total Expenses Net Income/ (Loss) Sheridan Hotel Retained Earnings Statement For the Month Ended May 31, 2017 Retained Earnings, May 1 Add #1 : Retained Earnings, May 31 Sheridan Hotel Balance Sheet May 31, 2017 Assets Current Assets Liabilities and Stockholders' Equity Current Liabilities Total Current Liabilities Total Liabilities Total Liabilities and Stockholders' Equity The Sheridan Hotel opened for business on May 1, 2017. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $9,000 in the revenue column resulted from Rent Revenue. The $4,300 in the expense column includes Salaries and Wages $ 3,000, Utilities $ 800, and Advertising $ 500. Assets Liabilities +Stockholders' Equity Unearn. Acc. Depr Acc. Retained Earnings Cash +Supplies+Insur. + LandBldgs.- Bldgs. Equip. Equip.Pay. +Pay+Pay. Rev. Pay +Stock +Rev.Exp-Div 0+ 3,300 38,400 59,9739,000-4,300 0 Prepd Depr Accts.Int. Sal./Wages Rent. Mortg. Com. Bal. 2,473+ 2,6001,80014,97372,400 0+16,800 0-4,673+ Your answer is partially correct Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. Insurance expires at the rate of $ 360 per month. 2. Acount of supplies shows $1,170 of unused supplies on May 31 3. (a) Annual depreciation is $3,720 on the building. (b) Annual depreciation is $3,120 on equipment. 4 The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) 5. Rental services related to unearned rent of $2,540 have been provided 6. Salaries of $780 are accrued and unpaid at May 31. Assets Prepd. Insur Cash Supplies Land Bldgs Bal. Adj. 1. Adj. 2. Adj. 3a. Adj. 3b. 2,473 2,600 1,800 14,973 72,400 360 1430 Adj.5 Adj.6. Adj. Bal. 2,473 1,170 1,440 14,973 72,400 Acc. Depr Equip. Int. Pay Acc. Depr- Bldgs Pay Equip. 0 4,673 0 16,800 0 310 260 160 160 260 4,673 310 16,800 Liabilities Stockholders' Equi Re Sal./Wages Pay Unearn. Rent. Rev. Mortg. Pay Com. Stock Rev. 0 3,300 38,400 59,973 9,000 2,540 2,540 780 780 760 38,400 59,973 11,540 Sheridan Hotel Income Statement For the Month Ended May 31, 2017 Revenues Expenses Total Expenses Net Income/ (Loss) Sheridan Hotel Retained Earnings Statement For the Month Ended May 31, 2017 Retained Earnings, May 1 Add #1 : Retained Earnings, May 31 Sheridan Hotel Balance Sheet May 31, 2017 Assets Current Assets Liabilities and Stockholders' Equity Current Liabilities Total Current Liabilities Total Liabilities Total Liabilities and Stockholders' Equity