QUESTIONS: (c) Prepare an adjusted trial balance on May 31. Based on: The Moto H
ID: 2341132 • Letter: Q
Question
QUESTIONS:
(c) Prepare an adjusted trial balance on May 31.
Based on:
The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.
Debit
Credit
500
$ 113,866
$ 113,866
Other data:
Salaries of $ 740 are accrued and unpaid at May 31.
MOTO HOTELTrial 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 Expense500
$ 113,866
$ 113,866
Explanation / Answer
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.) (2600-1100)
3a
Depreciation expense - equipment
200
Accumulated depreciation on equipment
200
(to record depreciation - equipment) (2400/12)
3b
Depreciation expense Building
250
Accumulated depreciation - Building
250
(To record depreciation - Building.) (3000/12)
4
Interest expense
186
Interest payable
186
(To record interest expense.) (37200*6%*1/12)
5
Unearned Rent Revenue
2660
Rent Revenue
2660
(To record rent revenue.)
6
Salaries expense
740
Salaries payable
740
(To record salaries expense.)
MOTO HOTEL
Adjusted trial balance sheet
Account title
Debit
Credit
Remarks
Debit
Credit
Cash
2333
2333
Supplies
1,100
2600-1500
Prepaid Insurance
1,350
1800-450
Land
14,833
14,833
Buildings
71,200
71,200
Equipment
16,800
16,800
Accounts Payable
4533
4533
Unearned Rent Revenue
3,300
3,300
Mortgage Payable
37,200
37,200
Common Stock
59,833
59,833
Rent Revenue
9,000
9,000
Salaries and Wages Expense
3,000
3,000
Utilities Expense
800
800
Advertising Expense
500
500
Insurance expense
450
450
Supplies expense
1500
1500
Depreciation expense - equipment
200
200
Accumulated depreciation on equipment
200
200
Depreciation expense Building
250
250
Accumulated depreciation - Building
250
250
Interest expense
186
186
Interest payable
186
186
Salaries expense
740
740
Salaries payable
740
740
115242
115242
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.) (2600-1100)
3a
Depreciation expense - equipment
200
Accumulated depreciation on equipment
200
(to record depreciation - equipment) (2400/12)
3b
Depreciation expense Building
250
Accumulated depreciation - Building
250
(To record depreciation - Building.) (3000/12)
4
Interest expense
186
Interest payable
186
(To record interest expense.) (37200*6%*1/12)
5
Unearned Rent Revenue
2660
Rent Revenue
2660
(To record rent revenue.)
6
Salaries expense
740
Salaries payable
740
(To record salaries expense.)