Question

Problem 4-03A (Part Level Submission)

The Ivanhoe Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.

Problem 4-03A (Part Level Submission) The Ivanhoe Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. IVANHOE HOTEL Trial Balance May 31, 2022 Credit Debit $ 2,433 2,600 1,800 14,933 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 $ 4,633 3,300 33,600 59,933 9,000 3,000 800 500 $110,466 $110,466 Other data: 1. Insurance expires at the rate of $450 per month. 2. A count of supplies shows $1,080 of unused supplies on May 31. 3. (a) Annual depreciation is $3,960 on the building. (b) Annual depreciation is $3,360 on equipment. 4. The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,570 has been earned. 6. Salaries of $790 are accrued and unpaid at May 31.

Answer 1

Solution: Part 1 Journal Entries No. Credit Account Titles and Explanation 1 Insurance Expense A/c Dr. To Prepaid Insurance A/C Debit $ 450 $ 450 2 Supplies Expense A/c Dr. $ 1,520 To Supplies A/C $ 1,520 3 Depericiation Expense A/c Dr. $ 610 To Accumulated Dep- Buildings A/c To Accumulated Dep- Equipment A/ $ $ 330 280 4 Interest Expense A/c Dr. $ 140 To Interest Payable A/C $ 140 5 Unearned Rent Revenue A/c Dr. $ 2,570 To Rent Revenue $ 2,570

$ 790 6 Salary and Wages Expense A/c Dr. To Salary and Wages payable A/C $ 790 Part 2 Dr Cr Date Particulars Cash Account $ Date Particulars $ 31-May By Ending Balance $ 2,433 Dr Supplies Account $ Date Particulars Date Particulars 31-May By Supplies Expense 31-May By Ending Balance $ $ 1,520 1,080

Dr Cr Date $ Particulars 31-May To Supplies Supplies Expense Account $ Date Particulars $ 1,520 31-May By Ending Balance $ 1,520 Dr Cr Date Particulars Partici Prepaid Insurance Account Date Particulars 31-May By Insurance Expense 31-May By Ending Balance $ $ 450 1,350 Dr Cr Date Particulars 31-May To Prepaid Insurance Insurance Expense Account $ Date Particulars $ 450 31-May By Ending Balance $ 450

Dr Land Account $ Date Particulars Date Particulars $ 31-May By Ending Balance $ 14,933 Dr Cr Buildings Account Date Parti Particulars Date Particulars $ 31-May By Ending Balance $ 67,600 Dr Equipment Account Date Particulars Date Particulars $ 31-May By Ending Balance $ 16,800

Dr Date Particulars Accumulated Dep-Buildings Account Date Particulars 31-May By Depericiaton Expense 330 31-May To Ending Balance $ 330 Dr Accumulated Dep-Equipment Account $ Date Date Particulars Particulars $ L 31-May By Depericiaton Expense $ 280 | 31-May To Ending Balance $ 280 Dr cr Date Depericiation Expense Account Particulars $ Date Particulars 31-May To Accumulated Dep- Buildings A/C $ 330 31-May To Accumulated Dep-Equipment A/c $ 280 31-May By Ending Balance 610

Dr Accounts Payable Account Date Date Particulars Particulars $ 31-May To Ending Balance $ 4,633 Dr Unearned Rent Revenue Account Date Date Particulars Particulars S 31-May To Rent Revenue 31-May To Ending Balance 2,570 5,870 $ Dr Cr Date Particulars Rent Revenue Account Date Particulars 31-May By Unearned Rent Revenue $ 2,570 31-May To Ending Balance 6,430

Dr Cr Mortgage Payable Account Date Date Particulars Particulars $ 31-May To Ending Balance $ 33,600 Dr Cr Common Stock Account $ Date Date Particulars Particulars 31-May To Ending Balance $ 59,933 Dr Cr Date Salary and Wages Expense Account Particulars $ Date 31-May To Salary and Wages Payable 790 Particulars 31-May By Ending Balance $ 3,790

Dr cr Date Particulars Salary and Wages Payable Account $ Date Particulars 31-May By Salary and Wages Expense $ 790 31-May To Ending Balance 790 Dr Cr Utilities Expense Account Date Date Particulars Particulars $ 31-May By Ending Balance 800 Dr Advertising Expense Account Date Date Particulars Particulars $ 31-May By Ending Balance 500

Dr Cr Date Interest Expense Account $ Date 140 Particulars 31-May To Interest Payable Particulars | 31-May By Ending Balance $ 140 Dr Cr Date Particulars Interest Payable Account $ Date Particulars 31-May By Interest Expense $ 140 31-May To Ending Balance $ 140