Question

Question 3 Cullumber's Hobe opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. CULLUMBER'S HOTEL Trial Balance May 31, 2020 Account Number Credit 101 126 Supplies Prepaid Insurance 130 Debit $1,400 2,150 1,300 13,000 61,600 15,600 Land 140 141 149 201 200 275 Buildings Equipment Accounts Payable Jnearned Rant revenue Mortgage Peyable Owner's Capital Rent vente Advertising Expense Saarlas and Wages Expense Utlities Experse $4,700 3,300 40,000 41,000 13,500 301 610 732 3,400 950 $102,500 sin2.500

Answer 1

Requirement a:

No.	Date	Account title and Explanation	Debit	Credit
1	May 31	Insurance Expense [1,800/12]	$150
		Prepaid insurance		$150
		[To record insurance expense]
2	May 31	Supplies expense [2,150-1,450]	$700
		Supplies		$700
		[To record supplies expense]
3	May 31	Depreciation expense	$438
		Accumulated depreciation-buildings [3695/12]		$308
		Accumulated depreciation-equipment [1560/12]		$130
		[To record depreciation expense]
4	May 31	Unearned rent revenue [3,300 x 2/3]	$2,200
		Rent revenue		$2,200
		[To record revenue from unearned]
5	May 31	Salaries and wages expense	$800
		Salaries and wages payable		$800
		[To record accrued salaries and wages expense]

Requirement b:

Cash
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$3,400
Supplies
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$2,150
May 31	Adjusting			$1,450	$700
Prepaid insurance
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$1,800
May 31	Adjusting			$150	$1,650
Land
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$13,000
Buildings
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$61,600
Equipment
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$15,600
Accumulated depreciation-Buildings
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$0
May 31	Adjusting			$308	$308
Accumulated depreciation-Equipment
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$0
May 31	Adjusting			$130	$130
Accounts payable
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$4,700
Salaries and wages payable
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$0
May 31	Adjusting			$800	$800
Interest payable
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$0
May 31	Adjusting			$200	$200
Unearned Rent revenue
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$3,300
May 31	Adjusting		$2,200		$1,100
Mortgage payable
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$40,000
Owner's Capital
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$41,000
Rent revenue
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$13,500
May 31	Adjusting			$2,200	$15,700
Advertising expense
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$600
Salaries and wages expense
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$3,400
May 31	Adjusting		$800		$4,200
Utiliteis expense
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance				$950
Insurance Expense
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting		$150		$150
Supplies expense
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting		$1,450		$1,450
Depreciation expense
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting		$438		$438
Interest expense
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting		$200		$200