The Vang Hotel opened for business on May 1, 2012. Here is its trial balance before adjustment on May 31. Cash Prepaid Insurance Supplies Land Account Buildings Equipment. Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Debit Credit 8,000 2,400 2,900 15,000 66,500 16,800 Rent Revenue Salaries and Wages Expense 5,500 Utilities Expense 800 Advertising Expense 500 118,400 118,500 5,200 4,800 42,500 55,000 11,000 Other data: Insurance expires at the rate of $400 per month. A count of supplies shows $750 of unused supplies on May 31. Annual depreciation is $6,000 on the building and $2,600 on VANG HOTEL Trial Balance May 31, 2012 equipment. The mortgage interest rate is 7% annually. (The mortgage was taken out on May 1.) Unearned rent of $6,500 has been earned. Salaries of $950 are accrued and unpaid at May 31. Instructions A. Journalize the adjusting entries on May 31. B. Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting entries. C. Prepare an adjusted trial balance on May 31. D. Prepare an income statement and a retained earnings statement for the month of May and a classified balance sheet at May 31. E. Identify which accounts should be closed on May 31.

The Vang Hotel opened for business on May 1, 2012. Here is its trial balance before adjustment on May 31 . VANG HOTEL Trial Balance May 31, 2012 Other data: - Insurance expires at the rate of $400 per month. - A count of supplies shows $750 of unused supplies on May 31 . - Annual depreciation is $6,000 on the building and $2,600 on equipment. - The mortgage interest rate is 7% annually. (The mortgage was taken out on May 1.) - Unearned rent of $6,500 has been earned. - Salaries of $950 are accrued and unpaid at May 31. Instructions A. Journalize the adjusting entries on May 31 . B. Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting entries. C. Prepare an adjusted trial balance on May 31. D. Prepare an income statement and a retained earnings statement for the month of May and a classified balance sheet at May 31. E. Identify which accounts should be closed on May 31