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.
| MOTO HOTEL 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.)
