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Crane's Hotel opened for business on May 1, 2022. Its trial balance before adjustment on May 31 is as follows. CRANE'S HOTEL Trial Balance May 31, 2022 Account Number Debit Credit 101 Cash $3,600 126 Supplies 2,000 130 Prepaid Insuranc 3,000 140 Land 12,000 141 60,600 Buildings Equipment 149 15,600 200 Notes Payable $ 40,000 201 4,900 208 3,300 301 41,000 429 Accounts Payable Unearned Rent Revenue Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 12,350 610 600 726 3,300 732 850 $101,550 $101,550 In addition to those accounts listed on the trial balance, the chart of accounts for Crane's Hotel also 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 Expense. Other data: 1. 2. 3. Prepaid insurance is a 1-year policy starting May 1, 2022. A count of supplies shows $700 of unused supplies on May 31. Annual depreciation is $3,636 on the buildings and $1,560 on equipment. The note payable interest rate is 6%. (The note was taken out on May 1 and will be repaid along with interest in 1 year.) Two-thirds of the unearned rent revenue has been earned. Salaries and wages of $800 are unpaid and unrecorded at May 31. 4. 5. 6. Your answer is correct. Journalize the adjusting entries on May 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation May Insurance Expense 31 250 Prepaid Insurance 250 May 31 Supplies Expense 1300 Supplies 1300 May 31 Depreciation Expense 433 Accumulated Depreciation-Buildings 303 Accumulated Depreciation-Equipment 130 May 31 Interest Expense 200 Interest Payable 200 May 31 2200 Unearned Rent Revenue Rent Revenue 2200 May 31 Salaries and Wages Expense 800 Salaries and Wages Payable 800 the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question Cash No. 101 Rer. Debit Credit Balance Date Explanation May Balance 31 3900 Supplies No. 126 Date Explanation Rer. Debit Credit Balance May 31" Balance May 31 Adjusting 1 Prepaid Insurance No. 130 Date Explanation Rer. Debit Credit Balance May 31 Balance V May 31 Adjusting JI Land No. 140 Date Explanation Ref. Debit Credit Balance May 31 Balance Buildings No. 141 Date Explanation Rer. Debit Credit Balance May 31 Balance V Accumulated Depreciation Buildings No. 142 Date Explanation Ref. Debit Credit Balance May 31 Adjusting JI Equipment No. 149 Date Explanation Rer. Debit Credit Balance May 31 Balance No. 150 Accumulated Depreciation Equipment Date Explanation May Adjusting 31 Rer. Debit Credit Balance J1 No. 201 Accounts Payable Date Explanation Rer. Debit Credit Balance May 31 Balance No. 208 Unearned Rent Revenue Date Explanation Ref. Debit Credit Balance May 31 Balance V May 31 Adjusting 1 Salaries and Wages Payable No. 212 Date Explanation Rer. Debit Credit Balance JI May Adjusting 31 Interest Payable Date Explanation No. 230 Rer. Debit Credit Balance May 31 Adjusting JI No. 200 Notes Payable Date Explanation Ref. Debit Credit Balance May 31 Balance No. 301 Owner's Capital Date Explanation Ref. Debit Credit Balance May Balance 31 Rent Revenue Date Explanation No. 429 Rer. Debit Credit Balance May 31 Balance May 31 Adjusting 1 No. 610 Advertising Expense Date Explanation Rer. Debit Credit Balance May 31 Balance No. 619 Depreciation Expense Date Explanation Rer. Debit Credit Balance May 31 Adjusting JI Supplies Expense No. 631 Date Explanation Rer. Debit Credit Balance May 31 Adjusting Jl No. 718 Interest Expense Date Explanation Rer. Debit Credit Balance May 31 Adjusting Jl Insurance Expense No. 722 Date Explanation Rer. Debit Credit Balance May 31 Adjusting 1 Salaries and Wages Expense No. 726 Date Explanation Rer. Debit Credit Balance May 31 Balance May 31 Adjusting JI No. 732 Utilities Expense Date Explanation Rer. Debit Credit Balance May 31 Balance V

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