Question

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 3

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

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

MOTO HOTEL
Retained Earnings Statement
For the Month Ended May 31, 2017
Retained earnings, May 1	$0
Add: Net income / (Loss)       [Refer income statement]	$3,890
Retained Earnings, May 31	$3,890

Answer 1

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Naming convention is not available, can be slightly different: Sign can be +/ Solution: Balance Sheet May.31 Current Assets: Cash Supplies Prepaid Insurance Total Current Assets Non-Current Assets: Land Building Less: Accumulated Depreciation - Building Equipment Less: Accumulated Depreciation - Equipment Total Assets Liabilities and Stockholders' Equity: Current Liabilities: Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Interest Payable Total Current Liabilities Non-Current (or long term) Liabilities: Mortgage Payable Total Liabilities Stockholders' Equity: Common Stock Retained Earning Total Stockholders' Equity Total Liabilities and Stockholder's Equity 2333 1070 1350 4753 14833 67600 320 67280 16800 270 16530 98643 103396 4533 670 730 140 6073 33600 39673 59833 3890 63723 103396