Question

Question 5 of 5 < > - /20 Current Attempt in Progress The Crane Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. CRANE HOTEL Trial Balance May 31, 2022 Credit Debit $ 2,453 2,600 1,800 14,953 72,400 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 $4,653 3,300 38,400 59,953 9,000 3,000 800 500 $115,306 $115,306 Other data: 1 2 Insurance expires at the rate of $450 per month A count of supplies shows $1,120 of unused supplies on May 31,

Answer 1

HMS. (A) Ans. Adjusting Journal Entries 1, 07 450 Insurance Experise All To Pre Paid Insurance All 450 Dr. (480 ( 1480 310 * 310 2. Supplies Expense All To Supplies All ( 2600- 1120) 319) Deprecation Expense ALL Do To Allumulated Depreciation the (Building) (6) Depreciation Expense All To Acumulated Depreciation All (Equipment) Dy 260 260 4. | 160 Br. Interest Expense Alla To Interest Payable All 160 2580 unearned Rent Revenue All Dr. To Rent Revenue All 2580 16, 820 salaries & wages Expense All m. 82- to salaries & wages Payable All Accumulated Delpeciation (Building) 3720112 (6) Accumulated Depoeciation (Equipment) 3120112 3lo (A) 260 4. Interest Expense 38400 X 5-11 160 12

(B) T- Accounts Accumulated Depreciation - Building All By Depacciation Expense All 310 310 To Bala eld Accumulated Depreciation - Equipment Alc By Depreciation Expense All 260 To Bal. cld 260 Accounts Payable All 4653 To Bal, cld 46537 By Bal.bid 3300 wh earned Rent Revenue All To fent Revenue All 2580 By Bal. bid To bal. Eld 720 Salaries & wages Payable All 820 By salaries & wages Expense Bal.eld 820 To All Interest Payable To Bal.eld 160 By Interest Expense All 160

Mortgage payable All 38400 By bal old 38400 To Bal. cld Common Stock All 59953 By Bal, bed 59953 to Bala eld 11580 Rent Revenue Alc By bal.bid qooo By un earned Reut 2580 Revenue au To Bal, eld 310 Depreciation Expense All To Accumulated Depreciation 310 (Building) By Building All TO Accumulated Depreciation 260 By Equipment All (Equipment) 260 There is no need to maintain all T. Accounts Because It is not neccessary to Maintain all the To Accounts for serving this question only those T- Accounts are cessary which has ah at adjust- Eutry. neut

(C) Adjusted TB Dr 10 Trial Balance Particulars adjusted TB Adjustments Dr. Cash 2453 Supplies 1480 Prepaid Insurance 11800 450 land 14953 12453 26oo 1120 1350 14953 Buildings 72400 172400 310 310 16800 260 2 bo 4653 2580 720 38400 820 820 Ibo (6. Anu Mulate Delreciation (Building) Equipment 16800 Acumulated Defreciation (Equihment) Accounts Payable 4 653 unearned. Rent Revenue 3300 38400 Mostgage Payable salaries & wages Payable Ilzter est fayable Common stock 59953 Retained earnings Rent Revenue 9000 Salaries & wages Expo 3000 utilities Expenses 8 Po Advertising Expenses Soo Depreciation Exha Interest Exp. supplies Expo Isurance Expo 115306 115306 59953 2580 11580 820 3820 30 5 Do 570 570 16 16 o 1480 1480 450 6o60 6060 116856 11686 Totals

(D) Income statement Revenues 11580 Rent Revenul 3820 8oo 590 Expenses salaries is wages Expense utilities Expense Advertising Expense Depreciation Exfeuse Interest Expense Supplies Expense Insurance Expense 570 16o 1480 450 (778) Net Income 3800 (E) statement of Retained Earnings Retained farnings (Beginning) as on May 1, 2022 Net Income 3800 Less: Dividend Retained Earnings as on May 31, 2022 3800

Balance sheet 2453 1120 1350 4923 14953 172090 116540 103583 Total liabilities & stack holders LA Assests Current Assests cash Supplies Prepaid Insurance Total current Asseste fixed Assests Land (495% Building (72400 - 310) Equipment (16800-260) Net fixed assests Total Assests Liabilities & Stockholders Equity Liabilities Accounts payable unearned Reut revenue salaries $ $ wages Payable Interest Payable Mortgage payable Total liabilities stock holders Equity COMMON stock Retained Earnings Total Stockholders Equity 108506 4653 720 820 | 160 138400 44753 59953 3800 63753 108506

Interest Expense (6) Accounts to be closed Rent Revenue Salaries & wages Expense utilities Expense Advertising Expense Refreçation Exfense upplies Exforse Insurance Expense