Question

Blossom's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. BLOSSOM'S HOTEL Trial Balance May 31, 2020 Account Number Credit 101 126 130 Debit $3,600 2,000 2,400 14,000 62,400 15,000 140 141 149 201 Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 208 275 $ 4,700 3,300 40,000 41,100 15,000 301 429 610 726 550 3,200 950 $104,100 732 $104,100

a. Journalize the adjusting entries on May 31.

b. Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries.

c. Prepare an adjusted trial balance on May 31.

d. Prepare an income statement for the month of May.

e. Prepare a retained earnings statement for the month of May.

f. Prepare a classified balance sheet at May 31.

g. Identify which accounts should be closed on May 31..

example of prefered formating above if you cant do it like that its totally fine i understand

Answer 1

Blossom's Hotel Adjusting Enteries Trans. Particulars 1 Insurance Expense Prepaid Insurance (Insurance expired) Debit in $ Credit in $ 200 200 2 1200 Supplies Expense Supplies (Supplies used) 1200 3 437 Depreciation Expense Accum.Depre - Build Accum.Depre - Equip. (To record depreciation) 3744/12 = 312 1500/12 = 125 312 125 4 200 Interest Expense Interest Payable (Interest accrued) 40000 x 6% x 1/12 200 5 2200 Unearned Rent Revenue Rent Revenue (Rent revenue earned) 3300 x 2/3 2200 6 700 Salaries and Wages Expense Salaries and Wages Payable (Salary accrued) 700 Closing Enteries Date Particulars May-31 Income Summary Advertising Expense Depreciation Expense Supplies Expense Interest Expense Insurance Expense Salaries and Wages Expense Utilities Expense (Expense accounts closed) Debit in $ Credit in $ 7437 550 437 1200 200 200 3900 950 17200 May-31 Rent Revenue Income Summary (Revenue accounts closed) 17200 9763 May-31 Income Summary Owner's Capital 9763

Worksheet For the peiod ending May 31 Unadjusted Adjustment Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 3600 3600 3600 2000 1200 800 800 2400 200 2200 2200 14000 14000 14000 62400 62400 62400 312 312 312 15000 15000 15000 125 125 4700 3300 2200 4700 1100 700 4700 1100 700 700 Acct. No. Particulars 101 Cash 126 Supplies 130 Prepaid Insurance 140 Land 141 Building 142 Accum.Depre - Build 149 Equipment 150 Accum.Depre - Equip. 201 Accounts Payable 208 Unearned Rent Revenue 212 Salaries and Wages Payable 230 Interest Payable 275 Mortgage Payable 301 Owner's Capital 429 Rent Revenue 610 Advertising Expense 619 Depreciation Expense 631 Supplies Expense 718 Interest Expense 722 Insurance Expense 726 Salaries and Wages Expense 732 Utilities Expense Totals 200 200 200 40000 41100 40000 41100 15000 40000 50863 2200 17200 550 550 437 437 1200 1200 200 200 200 700 200 3900 3200 950 950 104100 104100 4937 4937 105437 105437 98000 98000 17200 550 Statement of Income For the peiod ending May 31 Rent Revenue Less: Advertising Expense Depreciation Expense Supplies Expense Interest Expense Insurance Expense Salaries and Wages Expense Utilities Expense Net Income 437 1200 200 200 3900 950 7437 9763 Statement of Owner's Equity For the period ending May 31 Owner's Capital Net Income 41100 9763 50863

Amounts in $ Amounts in $ Balance sheet As at May 31 Assets Current Assets Cash Supplies Prepaid Insurance 3600 Amounts in $ Amounts in $ Liabilities Current Liabilities Accounts Payable 800 Unearned Rent Revenue 2200 6600 Salaries and Wages Payable Interest Payable 4700 1100 700 200 6700 40000 Non Current Assets Land Building Accum.Depre - Build Equipment Accum.Depre - Equip. Total Assets 62400 -312 14000 Non Current Liabilities Mortgage Payable 62088 Owner's Equity 14875 Owner's Capital 97563 Total Liabilities & Equity 15000 - 125 50863 97563