Problem 4-3A The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31. MOTO HOTEL Trial Balance May 31, 2017 Debit Credit $ 2,453 2,600 1,800 14,953 72,400 16,800 Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense Utilities Expense Advertising Expense $ 4,653 3,300 38,400 59,953 9,000 3,000 800 500 $115,306 $115,306 Other data: 1. Insurance expires at the rate of $450 per month. 2. A count of supplies shows $1,120 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. Unearned rent of $2,580 has been earned. 6. Salaries of $820 are accrued and unpaid at May 31. Prepare an income statement for the month of May. MOTO HOTEL Income Statement Prepare a retained earnings statement for the month of May. MOTO HOTEL Retained Earnings Statement 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.) MOTO HOTEL Balance Sheet Assets Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Identify which accounts should be closed on May 31. Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Rent Revenue Salaries and Wages Expense Utilities Expense Advertising Expense Interest Expense Insurance Expense Supplies Expense Depreciation Expense