Question

Problem 3-A (Part Level Submission) The Skyline Motel opened for business on May 1, 2015. Its trial balance before adjustment on May 31 as follows STILINE MOVIE Trial Balance May 31, 2015 Account Number Debit $ 3,560 Credit Prepaid Insurance 12,550 Buildings $ 11,227 Accounts Payable Uneamed Rent Revenue Mortgage Payable Rent Revenue Advertising Expense Salaries and Wages Expense U s Expense $99,15 In addition to those accounts listed on the trial balance, the chart of accounts for Skyline Hotel contains the following accounts and account numbers: No. 142 Accumulated Depreciation Buildings, No 150 Accumulated 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 Other data 1. 3. 4. 5. 6. Prepaid insurance is a 1-year policy starting May 1, 2015 A count of suppies shows $705 of unused supplies on May 31 Annual deprecationis $7.958 on the buildings and $1.452 on equipment The mortgage interest rate is 12% (The mortgage was taken out on May 1.) Two-thirds of the unearned rent revenue has been earned. Salaries of $752 are accrued and unpaid at May 1

Answer 1

Skyline Motel Debit Prepaid Insurance Date Explanation May-31 Bal May-31 Insurance Expense Acct. 130 Credit Balance 2652 1768 884 Insurance Expense Date Explanation May-31 Prepaid Insurance Debit Credit 1768 Acct. 722 Balance 1768 Debit Supplies Date Explanation May-31 Bal May-31 Supplies Expense Acct. 722 Credit Balance 2041 1336 705 Supplies Expense Date Explanation May-31 Supplies Debit Credit Acct. 631 Balance 1336 1336 Accum. Depre - Building Date Explanation May-31 Depreciation Expense Debit Acct. 142 Credit Balance 249 249 Depreciation Expense - Build Date Explanation May-31 Accum. Depre- Building Debit Credit 249 Acct. 619 Balance 249 Accum. Depre - Equipment Date Explanation May-31 Depreciation Expense Debit Acct. 150 Credit Balance 121 121 Depreciation Expense - Equip Date Explanation May-31 Accum. Depre - Building Debit Credit 121 Acct. 619 Balance 121 Interest Expense Date Explanation May-31 Interest Payable Debit Credit 400 Acct. 718 Balance 400 Interest Payable Date Explanation May-31 Interest Expense Debit Acct. 230 Credit Balance 400 400 Debit Credit Unearned Rent Revenue Date Explanation May-31 Bal May-31 Rent Revenue Acct. 208 Balance 2041 680 1361 Rent Revenue Date Explanation May-31 Unearned Rent Revenue Debit Acct. 429 Credit Balance 1361 1361 Debit Credit Salaries and Wages Expense Date Explanation May-31 Bal May-31 Salaries and Wages Payable Acct. 726 Balance 3203 3955 752 Salaries and Wages Payable Date Explanation Debit May-31 Salaries and Wages Expense Acct. 212 Credit Balance 752 752 Other all Opening and closing balance will remain same as Trial Balance