Question

The Cullumber Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. CULLUMBER HOTEL Trial Balance May 31, 2022 Credit Debit $ 2,343 2,600 1,800 14,843 67,600 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 $ 4,543 3,300 33,600 59,843 9,000 3,000 800 500 $110,286 $110,286 Other data: 1. Insurance expires at the rate of $360 per month. 2. A count of supplies Shows $1,050 of unused supplies on May 31. 3. (a) Annual depreciation is $3,120 on the building. b) Annual depreciation is $2,520 on equipment. 4. The mortgage interest rate is 6%. The mortgage was taken out on May 1.) 5. Uneamed rent of $2,530 has been earned. 6. Salaries of $810 are accrued and unpaid at May 31.

Answer 1

Answer is given below

It is assumed interest on mortgage is 6% per annum. Accordingly interest has been taken for 1 month.

Credit No.1 1 Journal Insurance Expense To Prepaid Insurance Debit $360 $360 $1,050 Suppplies Expense To Supplies $1,050 3 a) $3,120 Depreciation To Accmulated Depreciation- Buildings $3,120 3 b) $2,520 Depreciation To Accmulated Depreciation- Equipment $2,520 $168 Interest Expense To Interest payable $168 5 $2,530 Unearned Rent Revenue To Rent Revenue $2,530 6 $810 Salaries and wages payable To Salaries and wages payable $810