Question

my home work is to do 3.2A and 3.3A

May 31 Instructions a. Prepare the adjusting entries for the month of May. Use J4 as the page number for your journal b. Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances and place a check mark in the posting reference column. c. Prepare an adjusted trial balance at May 31, 2020. P3.2A (LO 2, 3, 4) Financial Statement Hank's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. c. Ad Prepa prepa Hank's Hotel Trial Balance May 31, 2020 Credit Debit $ 3,400 2,080 2,400 12,000 60,000 15,000 Account Number 101 126 130 140 141 149 201 208 275 301 429 610 726 732 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 Experise $ 4,700 3,300 40,000 41,380 10,300 600 3,300 900 $99.680 $99,680 In addition to those accounts listed on the trial balance, the chart of accounts for Hank's Hotel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, No. 150 Accu- mulated Depreciation Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data: 1. Prepaid insurance is a 1-year policy starting May 1, 2020. 2. A count of supplies shows $750 of unused supplies on May 31. 3. Annual depreciation is $3,600 on the buildings and $1,500 on equipment, 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue has been earned. 6. Salaries of $750 are accrued and unpaid at May 31,

Answer 1

3.3A

a.

Account Titles	Debit	Credit
Accounts Receivable	$          1,100
Service Revenue		$          1,100
Supplies Expense	$             850
Supplies		$             850
Rent Expense	$          1,700
Prepaid Rent		$          1,700
Depreciation Expense	$             700
Accumulated Depreciation		$             700
Interest Expense	$             100
Interest Payable		$             100
Salaries and Wages Expense	$             725
Salaries and Wages Payable		$             725
Unearned Rent Revenue	$          1,450
Rent Revenue		$          1,450

b.

Income Statement
Revenue
Service Revene	$       17,100
Rent Revenue	$          2,860
Total Revenue		$       19,960
Expenses
Salaries and Wages Expense	$          8,725
Rent Expense	$          3,600
Depreciation Expense	$             700
Supplies Expense	$             850
Utilities Expense	$          1,510
Interest Expense	$             100
Total Expenses		$       15,485
Net Income		$         4,475

Statement of Owner's Equity
Beginning Balance, Capital	$       22,000
Add : Net Income	$          4,475
	$       26,475
Less : Drawings	$          1,600
Ending Balance, Capital	$       24,875

Balance Sheet
Assets
Current Assets
Cash	$          8,700
Accounts Receivable	$       11,500
Supplies	$             650
Prepaid Rent	$             500
Total Current Assets		$       21,350
Property, Plant and Equipment
Equipment	$       18,000
Less :Accumulated Depreciation-Equipment	$           (700)
Total Property, Plant and Equipment		$       17,300
Total Assets		$       38,650
Liabilities & Owner's Equity
Current Liabilities
Accounts Payable	$          2,500
Salaries and Wages Payable	$             725
Interest Payable	$             100
Unearned Service Revenue	$             450
Total Current Liabilities		$         3,775
Long term Liabilities
Notes Payable		$       10,000
Total Liabilities		$       13,775
Owner's Equity
Owner's Capital	$       24,875
Total Owner's Equity		$       24,875
Total Liabilities & Owner's Equity		$       38,650

c.
Interest for year = $10000 x 12% = $1200
Months outstanding = 1 month

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