# 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

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

Tutorials for this Question
1. ## Solution: Accounting Problem Solution

Tutorial # 00001654 Posted By: Waqasfast Posted on: 09/30/2013 10:56 AM
Puchased By: 3
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