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Problem 3-02A a-d

Sandhill's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows.

In addition to those accounts listed on the trial balance, the chart of accounts for Sandhills Hotel also contains the following accounts and account numbers: No. 142 Accumulated DepreciationBuildings, No. 150 Accumulated DepreciationEquipment, 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.		Prepaid insurance is a 1-year policy starting May 1, 2020.
2.		A count of supplies shows $800 of unused supplies on May 31.
3.		Annual depreciation is $3,612 on the buildings and $1,500 on equipment.
4.		The mortgage at an annual interest rate is 6%. (The mortgage was taken out on May 1.)
5.		Two-thirds of the unearned rent revenue has been earned.
6.		Salaries of $700 are accrued and unpaid at May 31.

Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation No. Date Debit Credit 1. May 31 Insurance Expense Prepaid Insurance 2. May 31 Supplies Expense Supplies 3. May 31 Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment 4. May 31 Interest Expense Interest Payable 5. May 31 Unearned Rent Revenue Rent Expense 6. May 31 Salaries and Wages Expense Salaries and Wages Payable Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.) Cash No. 101 Credit Date Explanation Ref Debit Balance May 31 Balance No. 126 Date Explanation Debit Credit Balance Ref May 31 Balance May 31 Adjusting J1 Prepaid Insurance No. 130 Date Explanation Debit Credit Balance Ref May 31 Balance May 31 Adjusting Land No. 140 Debit Credit DateExplanation Ref Balance May 31 Balance Buildings No. 141 Date Explanation Debit Credit Balance Ref May 31 Balance Accumulated Depreciation-Buildings No. 142 Ref. Explanation Debit Credit Balance Date Adjusting J1 May 31 No. 149 Equipment Ref. Date Explanation Debit Balance Credit Balance May 31 Accumulated Depreciation-Equipment No. 150 Ref. Date Explanation Debit Balance Credit Adjusting J1 May 31 Accounts Payable No. 201 Ref. Date Explanation Debit Balance Credit Balance May 31 Unearned Rent Revenue No. 208 Ref. Date Explanation Debit Balance Credit Balance May 31 Adjusting J1 May 31 Salaries and Wages Payable No. 212 Ref. Date Explanation Debit Balance Credit Adjusting J1 May 31 Interest Payable No. 230 Ref. Date Explanation Debit Balance Credit Adjusting 31 May 31 Mortgage Payable No. 275 Ref. Date Explanation Debit Balance Credit Balance May 31 Owner's Capital No. 301 Ref. Date Explanation Debit Balance Credit Balance May 31 No. 429 Rent Revenue Ref. Date Explanation Debit Balance Credit Balance May 31 Adjusting 31 May 31 Advertising Expense No. 610 Ref. Date Explanation Debit Balance Credit Balance May 31 No. 619 Depreciation Expense Ref. Date Explanation Debit Balance Credit Adjusting 31 May 31 Supplies Expense No. 631 Ref. Date Explanation Debit Balance Credit Adjusting J1 May 31 No. 718 Interest Expense Ref. Date Explanation Debit Balance Credit Adjusting J1 May 31 No. 722 Insurance Expense Ref. Date Explanation Debit Balance Credit Adjusting J1 May 31 Salaries and Wages Expense No. 726 Ref. Date Explanation Debit Balance Credit Balance May 31 Adjusting J1 May 31 Utilities Expense No. 732 Ref. Date Explanation Debit Balance Credit Balance May 31 SANDHILL'S HOTEL Income Statement SANDHILL'S HOTEL Owner's Equity Statement Prepare a balance sheet at May 31. (List Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.) SANDHILL'S HOTEL Balance Sheet Assets Liabilities and Owner's Equity Prepare an adjusted trial balance on May 31. SANDHILL'S HOTEL Adjusted Trial Balance May 31, 2020 Debit Credit Totals

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