Tim Cook opened a Motel for business on May 1, 2020. His accountant has extracted the following trial balance from his books of account as at May 31 2020.

Trial Balance

As at May 31 2020

Details

Dr.

Cr.

$

$

Cash

2500

Supplies

1900

Prepaid Insurance

2400

Land

15000

Lodge

70000

Furniture

16800

Accounts Payable

5300

Unearned Revenue

3600

Mortgage Loan

35000

Musk, Capital

60000

Rent Revenue

9200

Advertise expense

500

Salaries expense

3000

Utilities Expense

1000

Total

113,100

113,100

Notes: The following additional information is to be taken into account.

1.Insurance expires at the rate of $200 per month.

2.Supplies show $900 of unused supplies on May 31.

3.Depreciation $300 on the Lodge and $250 on furniture per month.

4.Mortgage interest 12% per year. The mortgage was taken on May 1.

5.Unearned rent of $1500 has been earned.

6.Salaries of $300 are accrued at May 31.

Instructions

Draw up the adjusted Journal and then complete the Worksheet, indicating the adjusted Trial Balance,

Income Statement & Balance sheet on May 31, 2020.