Problemthe moto hotel opened for business on may 1st 2017, Ask an Expert

Accounting

Problem

The Moto Hotel opened for business on May 1st, 2017. Here is a trial balance before adjustment on May 1st 2017. Here is a trial balance before adjustment on May 31st

	Debit	Credit
Cash	2500
supplies	2600
prepaid insurance	1800
land	15000
buildings	70000
equipment	16800
accounts payable		4700
unearned rent revenue		3300
mortgage payable		36000
common stock		60,000
rent revenue		9000
salaries and wages expense	3000
utilities expense	800
advertising expense	500
	113,000	113,000

Other data:

1. insurance expires at the rate of $450/month.
2. a count of supplies shows $1050 of unused supplies on may 31
3. a. annual depreciation is $3600 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 $2500 has been earned
6. salaries of $900 are accrued and unpaied at May 31.

Part 1:

JOurnalize the adjusting entries on May 31.

Part 2:

Prepare a ledger using T-Accounts. Enter the trial balance amounds and post the adjusting entries.

Part 3:

Prepare an adjusted trial balance on May 31.

Part 4:

Prepare an Income Statement for the month of May.

Part 5: prepare a retained earnings statement for the MOnth of May.

Part 6: Prepare a classified Balance Sheet at May 31.

Part 7: identify which accounts should be closed on May 31.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92759237

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - on january 1 2017 pina corporation sold a

Question - On January 1, 2017, Pina Corporation sold a building that cost $258,210 and that had accumulated depreciation of $105,500 on the date of sale. Pina received as consideration a $248,210 non-interest-bearing not ...

Question - feb1 purchased 1200 shares of bj common stock 2

Question - Feb.1 Purchased 1,200 shares of BJ common stock (2% of outstanding shares) for $8,400.July1Received cash dividends of $2 per share on BJ common stock.Sept.1Sold 500 shares of BJ common stock for $5,400.Dec.1Re ...

Question - assume that green cos total assets at the end of

Question - Assume that Green Co.'s total assets at the end of the prior year and at the end of the current year were $937,000 and $1,019,000, respectively. Calculate ROI (based on operating income) for the current year u ...

Question - jennifer is a cpa and a single taxpayer using

Question - Jennifer is a CPA and a single taxpayer using the standard deduction. In 2018, her CPA practice generates net income of $162,000 and she has no other income or losses. Jennifer's taxable income before the QBI ...

Question - equipment purchased by park consultancy for

Question - Equipment purchased by Park Consultancy for $38,220 on January 2, 2019, has an estimated useful life of 10 years and an estimated salvage value of $2,700. What adjustment for depreciation should be recorded on ...

Question - machine b the recorded cost of this machine was

Question - Machine B: The recorded cost of this machine was $201,600. Evers estimates that the useful life of the machine is 4 years with a $11,500 salvage value remaining at the end of that time period. Calculate the am ...

Questions -q1 tom is employed by aa ltd in the usa which is

Questions - Q1. Tom is employed by AA Ltd in the USA which is the parent company located in Los Angelos. Tom was transferred on the 30th of December 2017 to the subsidiary company in Brunswick Melbourne Victoria. AA Ltd ...

Question - income conversion rodrigo owns 1 share of

Question - Income Conversion: Rodrigo owns 1 share of Berkshire Hathaway Class A stock that he purchased 50 weeks ago for $250,000. The stock is currently worth $325,000, and Rodrigo wants to sell the stock soon. Rodrigo ...

Question - x companys profit equation next year is expected

Question - X Company's profit equation next year is expected to be 0.47R-$12,900, where R is total revenue. Assuming a tax rate of 36%, what must next year's revenue be in order for X Company to earn after-tax profits of ...

Question - ralph henwood was paid a salary of 64600 during

Question - Ralph Henwood was paid a salary of $64,600 during 2018 by Odesto Company. In addition, during the year Henwood started his own business as a public accountant and reported a net business income of $70,000 on h ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert