Question

Sheridan's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows.

SHERIDAN'S HOTEL Trial Balance May 31, 2020
Account Number				Debit		Credit
101		Cash		$ 3,600
126		Supplies		2,100
130		Prepaid Insurance		1,800
140		Land		14,000
141		Buildings		62,200
149		Equipment		15,000
201		Accounts Payable				$ 4,700
208		Unearned Rent Revenue				3,300
275		Mortgage Payable				40,000
301		Owner’s Capital				41,100
429		Rent Revenue				14,450
610		Advertising Expense		550
726		Salaries and Wages Expense		3,400
732		Utilities Expense		900
				$103,550		$103,550

In addition to those accounts listed on the trial balance, the chart of accounts for Sheridan’s Hotel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

1.		Prepaid insurance is a 1-year policy starting May 1, 2020.
2.		A count of supplies shows $700 of unused supplies on May 31.
3.		Annual depreciation is $3,732 on the buildings and $1,500 on equipment.
4.		The mortgage at an annual interest rate is 6%. (The mortgage was taken out on May 1.)
5.		Two-thirds of the unearned rent revenue has been earned.
6.		Salaries of $700 are accrued and unpaid at May 31

Journalize the adjusting entries on May 31. Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. Prepare an adjusted trial balance on May 31. Prepare an income statement for the month of May. Prepare an owner’s equity statement for the month of May. Prepare a balance sheet at May 31 Liabilities and Owner’s Equity

Answer 1

journal entries2 - Microsoft Excel - X Page Layout Formulas Data Review View ♡ General Home Insert * Cut La Copy Paste - Format Painter Clipboard Calibri 11 - A A BIU - DA Font - Wrap Text Merge & Center 1 1 Formationgl a France se e - 3 insert Delete Format Autosum * Full Song for Fill 2 Clear Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Sort & Filter Editing Find & Select Alignment Number Cells G22 A F G H I Credit B MOTO HOTEL General, Journal General Journal Debit Insurance Expenses=($1800/12) To Prepaid Insurance (Being amount of Insurance expired @$150 per month) 150.00 $ 150.00 1,400.00 Supplies Expenses=($2100-$700) To Supplies (Being amount of Supplies Expenses) $ 1,400.00 $ 311.00 Depreciation Expenses-Building($3732/12) To Accumulated Depreciation-Building (Being amount of Depreciation) 311.00 125.00 Depreciation Expenses-Equipment($1500/12) To Accumulated Depreciation Equipment (Being amount of Depreciation) 125.00 200.00 200.00 Interest Expense=($40000*6%*1/12) To Interest Payable (Being amount of interest payable on mortgage) Sheet24 jenna Aracel Sheet3 Sheet9 K 22 ™ Ready Sheet16_Sheet17 Sheet19 Sheet20 Sheet21 OO OPA 100% @ ve ENG U 14:41 22-02-2020 - W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri 11 - A A BIU - DA Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells F22 А F G H I Credit B MOTO HOTEL General, Journal General Journal Debit Insurance Expenses=($1800/12) To Prepaid Insurance (Being amount of Insurance expired @$150 per month) 150.00 $ 150.00 1,400.00 Supplies Expenses=($2100-$700) To Supplies (Being amount of Supplies Expenses) $ 1,400.00 311.00 Depreciation Expenses-Building($3732/12) To Accumulated Depreciation-Building (Being amount of Depreciation) 311.00 125.00 Depreciation Expenses-Equipment($1500/12) To Accumulated Depreciation Equipment (Being amount of Depreciation) 125.00 200.00 200.00 Interest Expense=($40000*6%*1/12) To Interest Payable (Being amount of interest payable on 22 mortgage) Sheet1 Sheet2 Sheet3 Select destination and press ENTER or choose Paste OO 100% @ U ve 14:42 ENG 220 22-02-2020 OPAO W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri 11 - A A BIU - DA Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells F22 А | F G H I 2,200.00 2,200.00 Unearned Rent=($3300*2/3) To Rent Revenue (Being amount of Unearned rent has been earned) 700.00 Salaries & Wages Expense To Salary Expenes Payable (Being amount of accrued salary Expenses) 700.00 Prepaid Insurance Balance Date Particular 01-May Balance 31-May 1,800.00 1,650.00 150.00 $ Insurance Balance Dr DR CR 40 Date Particular 31-May Adjustment 42 $ 150.00 150.00 43 Supplies 44 Balance India Sheet1 Sheet2 Sheet30 Ke Ready OO 100% 0 A 14:42 ENG 22-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View ♡ General 1 - Wrap Text Merge & Center 1 - 3 Autosum * * Cut La Copy Paste - Format Painter Clipboard Calibri 11 - A A BIU - DA Font - % 8.09 Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format Fill 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells 153 - for A F G H I E 31 32 Prepaid Insurance DR Cr Date Particular 01-May Balance 31-May CR Account No.-130 Balance Dr $ 1,800.00 150.00 150.00 5 $ 1,650.00 $ 37 Insurance Balance 38 39 40 Date Particular 31-May Adjustment 42 DR CR 41 $ 150.00 150.00 Supplies 43 44 Account No.-126 Balance DR CR 45 Date Particular 01-May Balance 47 31-May Adjustment 700.00 $ 2,100.00 1,400.00 Supplies Expense Account No.-631 Balance DR 51 Date Particular 52 01-May Adjustment 1400 1,400.00 53 Sheet1 Sheet2 Sheet3 Ready OO 100% U A a ENG 22-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View ♡ General Fill * Cut La Copy Paste - Format Painter Clipboard Calibri 11 - A A BIU - DA Font - Wrap Text Merge & Center - % 8.09 Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Z Et Sort & Find & Filter Select Editing Alignment Number Cells 153 - fic A F G H I 53 54 Depreciation-Building 55 Balance DR 56 Date Particular 31-May Adjustment 311.00 311.00 58 Depreciation Equipment 59 60 Balance DR 61 Date Particular 62 31-May Adjustment 63 125.00 125.00 Accumulated Depreciation-Building Account No.-142 Balance DR 311 $ 311.00 Date Particular 31-May Adjustment 68 69 70 Date Particular 31-May Adjustment Accumulated Depreciation-Equipment Acount No.150 Balance CR - 125 $ 125.00 73 Interest Expense Account No.-718 Balance 74 75 Ke Ready Sheet1 Sheet2 Sheet30 OO OP A 100% @ U - 14:45 ENG 22-02-2020 G 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Calibri 11 - A A BIU - DA Font Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Fill 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells 153 31-May Adjustment 125 $ 125.00 73 74 Interest Expense Account No.-718 Balance 76 DR Dr CR Date Particular 31-Mayl Adjustment 200.00 200.00 78 Interest Payable Account No.-230 Balance Dr DR CR 81 Date Particular 31-May Adjustment 200.00 $ 200.00 82 83 Unearned Rent Revenue Account No.-208 Balance DR Dr 86 Date Particular 31-May Balance 31-May Adjustment 89 90 $ $ 3,300.00 1,100.00 2,200.00 Rent Revenue Account No.-429 Balance 91 Dr 92 Date Particular 93 31-May Balance 94 31-May Adjustment 95 Sheet1 Sheet2 Sheet3 Ready CR $ $ 14,450.00 16,650.00 2,200.00 OO op ^ 100% @ U u 14:45 D ENG 22-02-2020 .

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General Calibri 11 - A A BIU - DA Font - Wrap Text Merge & Center Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles AutoSum - A Fill Sort & Find & 2 Clear Filter Select Editing Alignment Number Cells 153 - fax А 95 96 Salaries and Wages Expense Account No.-726 Balance 97 DR CR 98 Date Particular 31-May Balance 100 31-May Adjustment $ 3400 700.00 3,400.00 4,100.00 TS 101 102 Salaries and Wages Payable 103 Account No.-212 Balance DR CR $ 700 700.00 MOTO HOTEL Adjusted Trial Balance MAY 31st Debit Credit 111 104 Date Particular 105 31-May Adjustment 106 107 108 109 110 Account No. Account Title 101 Cash 112 126 Supplies 130 Prepaid Insurance 114 140 Land 141 Building 116 149 Equipment 117 201 Accounts Payable onoluinnarnad Dant Douanua ► Sheet1 Sheet2 Sheet3 Ready 113 3,600.00 700.00 1,650.00 14,000.00 62,200.00 15,000.00 115 4,700.00 1 100 nn 110 OO 100% 0 u 14:45 ENG 220 22-02-2020 . OPAO W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Calibri 11 - A A BIU - DA Font Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Fill 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells 153 - A F G H I 107 108 MOTO HOTEL Adjusted Trial Balance MAY 31st Debit 109 Credit 3,600.00 700.00 1,650.00 14,000.00 62,200.00 15,000.00 110 Account No. Account Title 111 101 Cash 112 126 Supplies 113 130 Prepaid Insurance 114 140 Land 115 141 Building 149 Equipment 201 Accounts Payable 208 Unearned Rent Revenue 212 Salaries & Wages Payable 120 230 Interest Payable 142 Accumulated Depreciation-Building 150 Accumulated Depreciation Equipment 275 Mortgage Payable 301 Owner's Capital 429 Rent Revenue 631 Supplies Expense 718 Interest Expense 726 Salaries & Wages Exepenses 732 Utilties Exepses 130 610 Advertisement Expenses Sheet1 Sheet2 Sheet3 Ready 4,700.00 1,100.00 700.00 200.00 311.00 125.00 40,000.00 41,100.00 16,650.00 1,400.00 200.00 4,100.00 900.00 550.00 129 OU 100% u OPA ENG 0 14:45 22-02-2020 + S. W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Calibri 11 - A A BIU - DA Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard Fill 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells 153 A F G H I 120 4,700.00 1,100.00 700.00 200.00 311.00 125.00 40,000.00 41,100.00 16,650.00 201 Accounts Payable 208 Unearned Rent Revenue 212 Salaries & Wages Payable 230 Interest Payable 142 Accumulated Depreciation-Building 150 Accumulated Depreciation-Equipment 275 Mortgage Payable 301 Owner's Capital 429 Rent Revenue 631 Supplies Expense 718 Interest Expense 726 Salaries & Wages Exepenses 732 Utilties Exepses 610 Advertisement Expenses 722 Insurance Expenes 619 Depreciation Exepnses-Building 619 Depreciation Expense-Equipment Total 1,400.00 200.00 4,100.00 900.00 550.00 150.00 311.00 125.00 1,04,886.00 131 $ 1,04,886.00 136 Income Statement MAY 31st 138 $ 16,650.00 139 Rent Revenue Less: Salaries and wages Expense Sheet1 Sheet2 Sheet30 140 4,100.00 Ready OO OPA 100% @ - ENG U 14:45 22-02-2020 0 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Calibri 11 - A A BIU - DA Font Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Fill 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells 153 - Fax А F G H I 136 Income Statement MAY 31st 137 $ 16,650.00 138 139 140 142 143 Rent Revenue Less: Salaries and wages Expense Utilities Expenses Supplies Expenses Advertisement Expenses Insurance Expenes Depreciation Expenses-Building=($3732/12) Depreciation Expenses-Equipment=($1500/12) Interest expenses Total Expenses Net Income 144 4,100.00 900.00 1,400.00 550.00 150.00 311.00 125.00 200.00 145 146 $ 147 148 149 7,736.00 8,914.00 150 Retained Earning Statement MAY 31st 155 Add: Net Income Clsoing balance of retained earnings 8,914.00 8,914.00 157 158 159 Ke Ready MOTO HOTEL Balance Sheet as at May 31st Sheet1 Sheet2 Sheet30 OO OPA 100% @ u ENG U 14:45 22-02-2020 S. W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General Calibri 11 - A A BIU - DA Font - Wrap Text Merge & Center 1 1 fod -23 conditional Format sorelle - 3 inset Delete Format Autosum * 2 Clear Sort & Find & Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Fill 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells 153 f А F G H I 158 159 160 MOTO HOTEL Balance Sheet as at May 31st 162 164 165 166 3,600.00 700.00 1,650.00 14,000.00 62,200.00 (311.00) 15,000.00 (125.00) 167 168 169 Assets Current Assets Cash Supplies Prepaid Insurance Land Building Less : Accumulted Depreciation Equipment Less : Accumulted Depreciation Total Assets Liabilities Current Liabilities Accounts Payable Salary Payable Interest Payable Unearned Rent Revenue Mortgage Payble Common Stock Retained Earnings Total Liabilities 96,714.00 171 173 175 176 177 4,700.00 700.00 200.00 1,100.00 40,000.00 41,100.00 8,914.00 178 179 $ $ 96,714.00 96,714.00 180 181 Sheet1 Sheet2 Sheet3 1 Ready OO op 100% 0 u 14:45 ENG 22-02-2020 -