Question

Problem 4-03A The Ivanhoe Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. IVANHOE HOTEL Trial Balance May 31, 2022 Debit Credit Cash $ 2,613 Supplies 2,600 Prepaid Insurance 1,800 Land 15,113 Buildings 70,000 Equipment 16,800 Accounts Payable $ 4,813 Unearned Rent Revenue 3,300 Mortgage Payable 36,000 Common Stock 60,113 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 $113,226 $113,226 Other data: 1. Insurance expires at the rate of $360 per month. 2. A count of supplies shows $1,180 of unused supplies on May 31. 3. (a) Annual depreciation is $2,760 on the building. (b) Annual depreciation is $2,160 on equipment. 4. The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,670 has been earned. 6. Salaries of $710 are accrued and unpaid at May 31.

Prepare a classified balance sheet at May 31. (List current assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment .)

IVANHOE HOTEL Balance Sheet choose the accounting period May 31, 2022For the Month Ended May 31, 2022For the Year Ended May 31, 2022
Assets
select an opening name for subsection one
enter a balance sheet item			$enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a closing name for subsection one					$enter a total amount for subsection one
select an opening name for subsection two
enter a balance sheet item			enter a dollar amount
enter a balance sheet item	$enter a dollar amount
select between addition and deduction     Add    Less     : enter a balance sheet item	enter a dollar amount		enter a subtotal of the two previous amounts
enter a balance sheet item	enter a dollar amount
select between addition and deduction     Add    Less     : enter a balance sheet item	enter a dollar amount		enter a subtotal of the two previous amounts		enter a total amount for subsection two
select a closing name for this part of the balance sheet					$enter a total amount for this part of the the balance sheet
Liabilities and Stockholders' Equity
select an opening name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Lo
enter a balance sheet item			$enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a closing name for subsection one					$enter a total amount for subsection one of the second part of the balance sheet
select an opening name for subsection two
enter a balance sheet item					enter a dollar amount
select a closing name for section1					enter a total amount for this section of the balance sheet
select an opening name for section two
enter a balance sheet item			enter a dollar amount
enter a balance sheet item			enter a dollar amount
select a closing name for section tw					enter a total of the two previous amounts
select a closing name for this part of the balance sheet					$enter a total amount for this part of the balance sheet

Answer 1

Calculation of Net income 11670 Rent revenue (9000 + 2670) Less: Expenses Salaries & wages (3000 + 710) Supplies expenses (2600 - 1180) Advertising Expenses Utilities Expenses Depreciation Interest Expense (5% on 36000 for a month) Insurance Expenses Net Income 3710 1420 500 800 410 150 360 -7350 4320

Ivanhoe Hotel Balance sheet 31-May-22 Assets Cash Supplies Prepaid insurance (1800 - 360) Land Building (net) Equipment (net) Total Assets 2613 1180 1440 15113 69770 16620 106736 Laibilities & Owners' equity Liabilities Accounts payable Unearned rent revenue Salaries & wages payable Mortgage payable Interest payable 4813 630 710 36000 150 Owners' equity Common stock Net income Total Laibilities & Owners' equity 60113 4320 106736