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Problem 4-03A The Pharoah Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. PHAROAH HOTEL Trial Balance May 31, 2022 Debit Credit Cash $ 2,623 Supplies 2,600 Prepaid Insurance 1,800 Land 15,123 Buildings 72,400 Equipment 16,800 Accounts Payable $ 4,823 Unearned Rent Revenue 3,300 Mortgage Payable 38,400 Common Stock 60,123 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 $115,646 $115,646 Other data: 1. Insurance expires at the rate of $360 per month 2. A count of supplies shows $1,130 of unused supplies on May 31. 3. (a) Annual depreciation is $3,480 on the building. (b) Annual depreciation is $2,880 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. Your answer is partially correct. Try again. Journalize the adjusting entries on May 31. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. Insurance Expense rance Expense 360 Prepaid Insurance C 350 2. Supplies Expense L 147011 Supplies N 1470 3 (a). Depreciation Expense L 2901 Accumulated Depreciation-Buildir on-Buildir| 290 3(b). Depreciation Expense 2401 Accumulated Depreciation Equip Equipr 240 4. Interest Expense 1600 Interest Payable JUL 160 5. Unearned Rent Revenue 2670 Rent Revenue 2670 SURULUSURULIA Rent Revenue 6. Salaries and Wages Expense 1 710 Salaries and Wages Payable Payable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Your answer is partially correct. Try again. Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (Post entries in the order of journal entries presented in the previous question.) 5/31 Bal. 4 1470 5/ 31 5/31 Bal. 4 Cash 26230 Supplies 2 6005/31 11300 Prepaid Insurance 18005/31 1440 C 360 5/31 5/31 Bal. D 5/31 Bal. 3 15123C O D O 290 290 240 Building 5/31 Bal. 4 724001 ccumulated Depreciation-Building O 531 D 5/31 Bal. Equipment 5/31 Bal. 16800|| $ Accumulated Depreciation Equipment 5/31 O 0 5 /31 Bal. O ||5/31 Bal. Unearned Rent Revenue 26705/310 5/31 Bal. 4 1 Salaries and Wages Payable 5/31 5/31 Bal. Interest Payable I D 5 /31 240 Accounts Payable C 4823 3300 630 0 160 160 Interest Payable 5 /31 5/31 Bal. 9 Mortgage Payable 5 /31 Bal.: Common Stock 5 /31 Bal. 1 38400 III 0 60123 Rent Revenue 0 5 /31 9000 5/31 5/31 Bal. Salaries and Wages Expense 3000 5/310 5/31 710| 5/31 Bal. 5/31 Bal 0 5/31 Bal. 5/31 5/31 Bal. 5/31 | 5/31 Bal 0 37100 Utilities Expense 18000 Advertising Expense 1 500 Interest Expense 160 160 Insurance Expense 360 360 Supplies Expense 1470 1470 Depreciation Expense 290 1 24010 5300 5/31 5/31 Bal. III do 5/31 5/31 Bal. 6 Prepare an adjusted trial balance on May 31. PHAROAH HOTEL Adjusted Trial Balance May 31, 2022 Supplies Prepaid Insurance Land Buildings Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipme Accounts Payable Unearned Rent Revenue Mortgage Payable Salaries and Wages Payable Interest Payable Common Stock Rent Revenue Salaries and Wages Expense Utilities Expense Advertising Expense Interest Expense Insurance Expense Supplies Expense Depreciation Expense Your answer is correct. Prepare an income statement for the month of May. PHAROAH HOTEL Income Statement For the Month Ended May 31, 20229 Revenues Rent Revenue 11670 Expenses Salaries and Wages Expense Utilities Expense 1800 Advertising Expense Interest Expense 150 Insurance Expense T360 Supplies Expense Depreciation Expense Total Expenses 7530 Net Income / (Loss) 4140 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Prepare a retained earnings statement for the month of May. PHAROAH HOTEL Retained Earnings Statement For the Month Ended May 31, 20224 Retained Earnings, May 1 Add Net Income /(Loss) Retained Earnings, May 31 0 0 0 4140 PHAROAH HOTEL Balance Sheet May 31, 2022 Assets Current Assets Cash Supplies Prepaid Insurance 5193 Total Current Assets Property, Plant and Equipment Land 15123 Buildings Accumulated Depreciation-Buildings Equipment Less Accumulated Depreciation-Equipme Total Assets Liabilities and Stockholders' Equity Current Liabilities 108986 Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Mortgage Payable s 44723 Total Current Liabilities Stockholders' Equity Common Stock 60123 Total Stockholders' Equity 44723 Total Liabilities and Stockholders' Equity Common Stock Retained Eamings Total Stockholders' Equity 54263 10986 Total Liabilities and Stockholders' Equity

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