Moto Hotel

Moto Hotel


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The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.

Trial Balance
May 31, 2017
Debit Credit
Cash $ 2,623
Supplies 2,600
Prepaid Insurance 1,800
Land 15,123
Buildings 70,000
Equipment 16,800
Accounts Payable $ 4,823
Unearned Rent Revenue 3,300
Mortgage Payable 36,000
Common Stock 60,123
Rent Revenue 9,000
Salaries and Wages Expense 3,000
Utilities Expense 800
Advertising Expense 500
$113,246 $113,246

Other data:

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. Unearned rent of $2,590 has been earned.
6. Salaries of $730 are accrued and unpaid at May 31.


Journalize the adjusting entries on May 31. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)