50.1K

Verified Solution

Link Copied!

The Ivanhoe Hotel opened for business on May 1, 2022. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $20,700 in the revenue column resulted from Rent Revenue. The $9,890 in the expense column includes Salaries and Wages $6,900, Utilities $1,840, and Advertising $1,150. Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (of a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a nezative 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 $1,035 per month. 2. A count of supplies shows $2,415 of unused supplies on Ma 31 . 3. (a) Annual depreciation is $8,280 on the building. (b) Annual depreciation is $6,900 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1) 5. Rental services related to unearned rent of $5.750 have been provided. 6. Salarles of \$2,070 are accrued and unpaid at May 31. Adj. 1. Adj. 2 . Adj. 3a. Adj. 3b. Ad). 4. Adj. 5 . Adj. 6 Adj. 2. Adj. 3a. Adj. 3b. Adj. 4. Adj. 5. Adj. 6 . Adj. Bal. \begin{tabular}{ll} & Assets \\ \hline Prepd.Insur. \\ 4,140 \end{tabular} Equip. Stockholders' Equity

Answer & Explanation Solved by verified expert

See Answer