Question

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
Cash		$ 2,333
Supplies		2,600
Prepaid Insurance		1,800
Land		14,833
Buildings		67,600
Equipment		16,800
Accounts Payable					$ 4,533
Unearned Rent Revenue					3,300
Mortgage Payable					33,600
Common Stock					59,833
Rent Revenue					9,000
Salaries and Wages Expense		3,000
Utilities Expense		800
Advertising Expense		500
		$110,266			$110,266

Other data:

1.		Insurance expires at the rate of $450 per month.
2.		A count of supplies shows $1,070 of unused supplies on May 31.
3.		(a) Annual depreciation is $3,840 on the building.
		(b) Annual depreciation is $3,240 on equipment.
4.		The mortgage interest rate is 5%. (The mortgage was taken out on May 1.)
5.		Unearned rent of $2,630 has been earned.
6.		Salaries of $730 are accrued and unpaid at May 31.

Cash
31-May	2,333
	supplies
31-May	2,600	31-May	1,530
Bal	1070
	prepaid insurance
31-May	1,800	31-May	450
Bal	1350
	land
31-May	14,833
	Buildings
31-May	67,600
	Accumulated depreciation-buildings
		31-May	320
		end bal	320
	Equipment
31-May	16,800
	Accumulated depreciation-Equipment
		31-May	270
		end bal	270
	Accounts payable
		31-May	4,533
	Unearned rent revenue
31-May	2630.00	31-May	3,300
		end bal	670
	Salaries and Wages payable
		31-May	730
		end bal	730
	interest payable
		31-May	140
		end bal	140
	Mortgage payable
		31-May	33,600
	Common stock
		31-May	59,833
	Rent revenue
		31-May	9,000
		31-May	2630
		end bal	11,630
	Salaries and wages expense
31-May	3,000
31-May	730
31-May	3,730
	Utilties expense
31-May	800
	Advertising expense
31-May	500
	Interest expense
31-May	140
31-May	140
	insurance expense
31-May	450
31-May	450
	supplies expense
31-May	1530
31-May	1530
	depreciation expense
31-May	320
31-May	270
31-May	590

Journalize the adjusting entries on May31. (If no entry is required, select No Entry for the a amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit Insurance Expense 450 Prepaid Insurance 450 Supplies Expense 1,530 Supplies 1,530 3 (a). Depreciation Expense 320 Accumulated Depreciation-Buildings 320 3 (b). Depreciation Expense 270 ccumulated Depreciation-Equipment 270 4 Interest Expense 140 Interest Payable 140 Unearned Rent Revenue 2,630 Rent Revenue 2,630 6 Salaries and Wages Expense 730 Salaries and Wages Payable 730

Prepare an adjusted trial balance on May 31 MOTO HOTEL Adjusted Trial Balance Debit Credit

Answer 1

MOTO HOTEL
Trial Balance
May 31, 2017
	Debit	Credit
Cash	$     2,333.00
Supplies	$     1,070.00
Prepaid Insurance	$     1,350.00
Land	$    14,833.00
Buildings	$    67,600.00
Equipment	$    16,800.00
Accounts Payable		$     4,533.00
Unearned Rent Revenue		$        670.00
Mortgage Payable		$    33,600.00
Common Stock		$    59,833.00
Rent Revenue		$    11,630.00
Salaries and Wages Expense	$     3,730.00
Utilities Expense	$        800.00
Advertising Expense	$        500.00
Depreciation Expense	$        590.00
Supplies expense	$     1,530.00
Insurance expense	$        450.00
Interest expense	$        140.00
Salaries and wages payable		$            730.00
Interest payable		$            140.00
Accumulated depreciation-Equipment		$            270.00
Accumulated depreciation-Building		$            320.00
Total	$ 1,11,726.00	$ 1,11,726.00