The Ivanhoe Hotel opened for business on May 1, 2022. Here is its trial balance before...

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The Ivanhoe Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.

IVANHOE HOTEL Trial Balance May 31, 2022
	Debit	Credit
Cash	$ 2,613
Supplies	2,600
Prepaid Insurance	1,800
Land	15,113
Buildings	70,000
Equipment	16,800
Accounts Payable		$ 4,813
Unearned Rent Revenue		3,300
Mortgage Payable		36,000
Common Stock		60,113
Rent Revenue		9,000
Salaries and Wages Expense	3,000
Utilities Expense	800
Advertising Expense	500
	$113,226	$113,226

Other data:

1.		Insurance expires at the rate of $360 per month.
2.		A count of supplies shows $1,180 of unused supplies on May 31.
3.		(a) Annual depreciation is $2,760 on the building.
		(b) Annual depreciation is $2,160 on equipment.
4.		The mortgage interest rate is 5%. (The mortgage was taken out on May 1.)
5.		Unearned rent of $2,670 has been earned.
6.		Salaries of $710 are accrued and unpaid at May 31.

Prepare a retained earnings statement for the month of May.

Prepare a retained earnings statement for the month of May. IVANHOE HOTEL Retained Earnings Statement For the Month Ended May

business accounting

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Answer 1

Answer #1

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Please find below the answer
Statement showing Computations
Particulars	Amount
Revenues:
Rent Revenue = 9000 + 2670	11,670.00

Expenses:
Salaries and wages expense = 3000 + 710	3,710.00
Utilities expense	800.00
Advertising expense	500.00
Insurance expense	360.00
Supplies expense= 2600 - 1180	1,420.00
Depreciation expense - Building = 2760/12	230.00
Depreciation expense - Equipment = 2160/12	180.00
Interest expense = 36000*5%/12	150.00
Total expenses	7,350.00

Net Income	4,320.00

IvanHoe Hotel Retained earnings statement For the month ended May 31'2022
Retained earnings, May 01	-
Add Net Income / (Loss)	4,320.00
Retained earnings, May 31	4,320.00

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Answer 2

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