Accounting Problem

Question # 00001810 Posted By: Waqasfast Updated on: 09/30/2013 10:54 AM Due on: 10/10/2013
Subject Accounting Topic Accounting Tutorials:
Question
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The Solo Hotel opened for business on May 1, 2014. Here is its trial balance before adjustment on May 31.

SOLO HOTEL

Trial Balance

May 31, 2014

Debit

Credit

Cash

$ 2,500

Supplies

2,600

Prepaid Insurance

1,800

Land

15,000

Buildings

70,000

Equipment

16,800

Accounts Payable

$ 4,700

Unearned Rent Revenue

3,300

Mortgage Payable

36,000

Common Stock

60,000

Rent Revenue

9,000

Salaries and Wages Expense

3,000

Utilities Expense

800

Advertising Expense

500

$113,000 =======

$113,000 =======

Other data:

1. Insurance expires at the rate of $450 per month.

2. A count of supplies shows $1,050 of unused supplies on May 31.

3. Annual depreciation is $3,600 on the building and $3,000 on equipment.

4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)

5. Unearned rent of $2,500 has been earned.

6. Salaries of $900 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.

Hint: Rent revenue is $11,500, Adjusted trial balance totals are $114,630 and Net income for May is $3,570

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Tutorials for this Question
  1. Tutorial # 00001654 Posted By: Waqasfast Posted on: 09/30/2013 10:56 AM
    Puchased By: 3
    Tutorial Preview
    Land Unadjusted Balance: $ 1,800.00 Unadjusted Balance: $ 15,000.00 1) $ 450.00 Adjusted Balance: $ 1,350.00 Adjusted Balance: $ 15,000.00 Buildings ...
    Attachments
    Solution_Accounting_Problem.xlsx (16.33 KB)

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