Question

CALCULATOR STANDARD VIEW PRINTER VERSION « BACK NEXT Problem 3-02A a-d Cullumber's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. CULLUMBER'S HOTEL Trial Balance May 31, 2020 Account Number Credit 101 126 Debit $3,400 2,050 1,800 13,000 58,800 15,600 Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Uneamed Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense $ 4,900 3,000 40,000 41,000 10,500 600 3,200 950 $99,400 $99,400 In addition to those accounts listed on the trial balance, the chart of accounts for Cullumber'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 $3,528 on the buildings and $1,560 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 $800 are accrued and unpaid at May 31. 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.) Credit No. Date Account Titles and Explanation 1. May 31 Insurance Expense Prepaid Insurance 2. May 31 Supplies Expense

Answer 1

ANswer of all parts are given

ADJUSTING Entries
Credit ($) Date Adjusting entries 1 31-May Insurance Expense A/C To prepaid Insurance A/C Account Number Debit ($) 722 130 150 150 (Being Insurance expired for the month of may 2020) working prepaid insurance for year = 1800 Insurance expense = 1800/12 =150 1350 31-May Supplies Expense A/C To supplies a/c ( being supplies consumed) 631 126 1350 working Supplies lessClosing balance of supplies supplies expense =2050 =700 =1350 3 424 31-May Depreciation Expense - To accumlated depreciation - building To accumlated depreciation - Equipment ( being depreciation expense amortised for the year) 619 142 150 294 130

working accumlated dep building 1month dep building 3528 3528/12 =294 accumlated dep Equipment 1month dep exp equ 1560 1560/12 =130 4 718 31-May Interest exp A/C To Interest Payable Being interest charged 230 200 working Mortgage = 40000 Interest -40000*6/100*1/12 =200 5 208 2000) 31-May unearned Revenue to Rent Revenue 429 2000 working Unearned Rent =3000 Rent revenue Recovered = 3000*2/3 = 2000 6 800 31-May salaries & wages expense To salaries and wages Payable ( being salaries unpaid 726 212 800

cash date Dr Explanation 31-May balance 101 balance 3400 Supplies date Dr Cr Explanation 31-May balance 31-May adjusting 126 balance 2050 1350 700 Dr Cr b Prepaid Insurance date Explanation 31-May balance 31-May adjusting 130 alance 1800 1650 150 land date Dr Cr Explanation 31-May balance 140 balance 13000 accumlated depreciation building date Explanation Dr 31-May adjusting Cr 142 balance 294 294

accumlated depreciation equipment date Explanation Dr 31-May adjusting Cr 150 balance 130 130 Building date Dr Cr Explanation 31-May balance 141 balance 58800 Equipment date Explanation 31-May balance Dr Cr 149 balance 15600 owner capital Explanation 31-May balance date Dr Cr 301 balance 41000 supllies expense date Explanation 31-May adjusting Dr Cr 631 balance 1350 1350

income statement

nt

Income statement Revenues : Rent revenue 12500 Expenses: salaries and wages Expense supplies expense utility expense Insurance expense interest expense Depreciation Expense Advertising Expense 4000 1350 950 150 200 424 600 Total expense 7674 Net Income 4826

Balance sheet

Balance sheet Liablilities amount Account payable 4900 Unearned rent revenue 1000 salaries And wages payable 800 Interest payable 200 Mortgage payable 40000 Total liabilities 46900 assets cash supplies prepaid Insuranse land Building Less accumlates der Equipment Less accumlates der amount 3400 700 1650 13000 58800 294 58506 15600 130 15470 owner capital add net income 41000 4826 45826 92726 Total Liabilities and owner equity Total Assets 92726

Adjusted Trial Balance

Adjusted Trial Balance for may 2020 Account Number Particulars 101 cash Cr 3400 700 1650 13000 58800 294 15600 126 supplies (2050-1350) 130 Prepaid Insurance (1800-150) 140 land 141 building 142 accumalted dep Building 149 Equipment 150 accumlated dep Equipment 201 account payable 208 Unearned Rent Revenue 212 salaries And wages payable 230 interest payable 275 Mortgage payable 301 Owner Capital 429 Rent Revenue 610 Advertising Expense 619 Depreciation Expense 631 supplies exp 718 interest expense 722 Insurance expense 726 salaries And wages expense 130 4900 1000 800 200 40000 41000 12500 600 424 1350 200 150 4000

732 Utility expense 950 100824 100824

owner equity statement

owner equity statemnet

owners equity statement 41000 onwer capital add net income 4826 owner capital as on 31 may 45826