QUESTIONS:(c) Prepare an adjusted trial balance on May31.Based on:The Moto Hotel opened...QUESTIONS:(c) Prepare an...

70.2K

Verified Solution

Question

Accounting

QUESTIONS:
(c) Prepare an adjusted trial balance on May31.
Based on:
The Moto Hotel opened for business on May 1, 2017. Here is itstrial balance before adjustment on May 31.
MOTOHOTEL
Trial Balance
May 31, 2017
Debit
Credit
Cash $  2,333
Supplies 2,600
Prepaid Insurance 1,800
Land 14,833
Buildings 71,200
Equipment 16,800
Accounts Payable $  4,533
Unearned Rent Revenue 3,300
Mortgage Payable 37,200
Common Stock 59,833
Rent Revenue 9,000
Salaries and Wages Expense 3,000
Utilities Expense 800
Advertising Expense
500
$ 113,866
$ 113,866

Other data:
1. Insurance expires at the rate of $450 per month.
2. A count of supplies shows $ 1,100of unused supplies on May 31.
3. (a) Annual depreciation is $ 3,000on the building.
(b) Annual depreciation is $ 2,400on equipment.
4. The mortgage interest rateis  6%. (The mortgage was taken out on May 1.)
5. Unearned rent of $ 2,660 has beenearned.
6.
Salaries of $ 740 are accrued and unpaid at May 31.

Answer & Explanation Solved by verified expert

3.9 Ratings (683 Votes)

MOTO HOTEL Adjustment entries Date Account title explanation Debit Credit 1 Insurance expense 450 Prepaid insurance 450 To record Insurance expires at the rate of 450 per month 2 Supplies expense 1500 Supplies 1500 To record supply expense 26001100 3a Depreciation expense equipment 200 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingQUESTIONS:(c) Prepare an adjusted trial balance on May31.Based on:The Moto Hotel opened...QUESTIONS:(c) Prepare an adjusted trial balance on May31.Based on:The Moto Hotel opened for business on May 1, 2017. Here is itstrial balance before adjustment on May 31.MOTOHOTELTrial BalanceMay 31, 2017DebitCreditCash$ 2,333Supplies2,600Prepaid Insurance1,800Land14,833Buildings71,200Equipment16,800Accounts Payable$ 4,533Unearned Rent Revenue3,300Mortgage Payable37,200Common Stock59,833Rent Revenue9,000Salaries and Wages Expense3,000Utilities Expense800Advertising Expense500$ 113,866$ 113,866Other data:1.Insurance expires at the rate of $450 per month.2.A count of supplies shows $ 1,100of unused supplies on May 31.3.(a) Annual depreciation is $ 3,000on the building.(b) Annual depreciation is $ 2,400on equipment.4.The mortgage interest rateis 6%. (The mortgage was taken out on May 1.)5.Unearned rent of $ 2,660 has beenearned.6.Salaries of $ 740 are accrued and unpaid at May 31.

MOTOHOTEL Trial Balance May 31, 2017
	Debit	Credit
Cash	$ 2,333
Supplies	2,600
Prepaid Insurance	1,800
Land	14,833
Buildings	71,200
Equipment	16,800
Accounts Payable		$ 4,533
Unearned Rent Revenue		3,300
Mortgage Payable		37,200
Common Stock		59,833
Rent Revenue		9,000
Salaries and Wages Expense	3,000
Utilities Expense	800
Advertising Expense	500
	$ 113,866	$ 113,866

1.		Insurance expires at the rate of $450 per month.
2.		A count of supplies shows $ 1,100of unused supplies on May 31.
3.		(a) Annual depreciation is $ 3,000on the building.
		(b) Annual depreciation is $ 2,400on equipment.
4.		The mortgage interest rateis 6%. (The mortgage was taken out on May 1.)
5.		Unearned rent of $ 2,660 has beenearned.
6.		Salaries of $ 740 are accrued and unpaid at May 31.