May 31
Prepaid Insurance 2,304
Insurance Expense 2,304
Supplies 2,051
Supplies Expense 1,328
Supplies 723
Accumulated Depreciation—Buildings 2,952
Depreciation Expense 2,952
Accumulated Depreciation—Equipment 1,464
Depreciation Expense 1,464
Unearned Rent Revenue 2,040
Rent Revenue 2,040
Salaries and Wages Payable 799
Salaries and Wages Expense 799
Interest Payable 240
Interest Expense 240
The Skyline Motel opened for business on May 1, 2015. Its trial balance before adjustment on May 31 is as follows.
SKYLINE MOTEL
Trial Balance
May 31, 2015
Account Number Debit Credit
101 Cash $ 3,537
126 Supplies 2,051
130 Prepaid Insurance 2,304
140 Land 14,070
141 Buildings 59,040
149 Equipment 14,640
201 Accounts Payable $ 11,880
208 Unearned Rent Revenue 3,060
275 Mortgage Payable 40,000
301 Common Stock
35,423
429 Rent Revenue 10,096
610 Advertising Expense
569
726 Salaries and Wages Expense 3,327
732 Utilities Expense 921
$100,459 $100,459
In addition to those accounts listed on the trial balance, the chart of accounts for Skyline Motel 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, 2015.
2. A count of supplies shows $723 of unused supplies on May 31.
3. Annual depreciation is $2,952 on the buildings and $1,464 on equipment.
4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.)
5. Two-thirds of the unearned rent revenue has been earned.
6. Salaries of $799 are accrued and unpaid at May 31.
Collapse question part
(a)
Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
1 answer