Question

The Sunland Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. SUNLAND HOTEL Trial Balance May 31, 2022 Debit Credit Cash $ 2,623 Supplies 2,600 1,800 Prepaid Insurance Land 15,123 Buildings 70,000 Equipment 16,800 Accounts Payable $4,823 Unearned Rent Revenue 3,300 Mortgage Payable 36,000 Common Stock 60,123 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 $113,246 $113,246 Other data: MacBook Air

Answer 1

1550 Journal Entries for the month of May Insurance Exp To Insurance Prepaid Being prepaid insurance transferred to expense account) 2 Supplies Expense To Supplies Being supplies consumed recorded) 3a Depreciation To Accumulated Depreciation on building Being depreciation on building recorded) 3b Depreciation To Accumulated Depreciation on equipment Being depreciation onequipment recorded) interest on Mortgage To Interest Payable Being interest for the month of May recorded56) sunearned Rent To Rent received Being rent income booked for the month of May) 6 Salaries Expense To Salary Payable Being salary for the month of May accrued) Working 1 Consumption of Supplies Opening Balance Closing Balance Supplies Consumed 2600 -1050 2 Calculation of Mortgage Interest 36000 5% 150

31-May Op Balance 31-May Op Balance 15123 31-May Cl Balance c/f 2623 31-May Cl Balance c/f 15123 Supplies Building 70000 31-May Op Balance 2600 31-May Consumed 1550 31-May Op Balance 31-May Cl Balance c/f 1050 31-May Cl Balance c/f 70000 Prepaid Insurance 1800 31.May Insurance Equipment 16800 31-May Op Balance 300 31-May Op Balance 31-May Cl Balance c/f 1500 31-May Cl Balance c/f 16800 Accounts Payable 31-May Op Balance Salary Payable 31-May Op Balance 31-May Cl Balance c/f 4823 31-May Cl Balance c/f 730 Uneamed Rent Revenue 31-May Rent Received 2590 31-May Op Balance Common Stock 31-May Op Balance 31-May C Balance c/ 710 31-May Cl Balance c/ 60123 Insuance Expense Insuance Expense 300 31-May Prepaid Insurans 31-May supplies 31-May Cl Balance c/1 300 31-May Ci Balance c/ 1550 Acc Dep Building 31-May Depreciation 290 Acc Dep Equipment 31-May Depreciation 31-May Cl Balance c/f 290 31-May CI Balance c/f 240 31-May Interest Payable Mortgage Interest 150 31-May C Balance c/f 150

Salaries and Wages Expense 3000 31-May Op Balance 31-May Salary Payable 730 31-May Cl Balance c/f 3730 Utilities 31-May Op Balance 31-May Cl Balance c/f Advertisment 500 31 May Op Balance 31-May C Balance c/f 500 Mortgage Payable 31-May Op Balance 31-May Balance c/ 36000 Rent revenue 31-May Op Balance 31-May Rent Received 2590 31-May C Balance c/ 11590 Depreciation 290 31-May Ace Dep Building 31-May Acc Dep Equipment 240 31-May C Balance c/ 530 Mortgage Int Payable 31-May Mortgage Int 150 31-May C Balance /