The Vang Hotel opened for business on May 1, 2012. Here is its trial balance before adjustment on May 31.
| VANG HOTEL Trial Balance May 31, 2012 |
||||
| Debit | Credit | |||
| Cash | $ 2,500 | |||
| Prepaid Insurance | 1,800 | |||
| Supplies | 2,600 | |||
| Land | 15,000 | |||
| Buildings | 70,000 | |||
| Equipment | 16,800 | |||
| Accounts Payable | $ 4,700 | |||
| Unearned Rent Revenue | 3,300 | |||
| Mortgage Payable | 36,000 | |||
| Common Stock | 60,000 | |||
| Rent Revenue | 9,000 | |||
| Salaries and Wages Expense | 3,000 | |||
| Utilities Expense | 800 | |||
| Advertising Expense | 500 | |||
| $113,000 | $113,000 |
Other data:
| 1. | Insurance expires at the rate of $450 per month. | |
| 2. | A count of supplies shows $1,050 of unused supplies on May 31. | |
| 3. | (a) Annual depreciation is $3,600 on the building. | |
| (b) Annual depreciation is $3,000 on equipment. | ||
| 4. | The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) | |
| 5. | Unearned rent of $2,500 has been earned. | |
| 6. | Salaries of $900 are accrued and unpaid at May 31. |
| (a) |
| Your answer is partially correct. Try again. | |
Journalize the adjusting entries on May 31.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
| (b) |
| Your answer is partially correct. Try again. | |
Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting entries.
(Post entries in the order of journal entries presented in the previous question.)