90.2K

Verified Solution

Link Copied!

* Question 9 The Oriole Hotel opened for business on May 1, 2017. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $9,000 in the revenue column resulted from Rent Revenue. The $4,300 in the expense column includes salaries and Wages $3,000, Utilities $800, and Advertising $500. Assets Prepd. Acc. Depr. Cash + Supplies + Insur. + Land + Bldgs. - Bldgs. Bal. 2,623 + 2,600 + 1,800 + 15,123 +70,000 0 Liabilities + Stockholders' Equity Acc. Depr.. Accts. Sal./Wages Unearn. Morta. Com. Retained Earnings + Equip. - Equip. = Pay. + Int. Pay + Pay. + Rent. Rev. + Pay + Stock + Rev. - Exp. - Div + 16,800 0 - 4,823 + 0 + 0 + 3,300 + 36,000 + 60,123 + 9,000 -4,300. O Question 9 Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. Insurance expires at the rate of $300 per month. 2. A count of supplies shows $1,050 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. Rental services related to unearned rent of $2,590 have been provided. 6. Salaries of $730 are accrued and unpaid at May 31. Assets Liabilities + Acc. Depr.- Land + Bldgs. - Bldgs. 15,12370,000 0 + Acc. Depr.- Equip. - Equip. 16,8000 Stockholders' Equity Com. Retained Earnings Stock + Rev. - Exp. - Div 60,123 9,000 4,300 0 Cash + Supplies + 2,623 2,600 = Prepd. Insur. 1,800 300 Accts. Sal./Wages Unearn. Pay. + Int. Pay + Pay. + Rent. Rev. + 4,8230 0 3,300 Mortg. Pay 36,000 + Bal. Adj. 1. 300 Insurance Expense Adj. 2. 1,050 Attempts: 0 of 15 used Question 9 The parts of this question must be completed in order. This part will be available when you complete the part above. Question 9

Answer & Explanation Solved by verified expert

See Answer