ment on May 31 is as follows. post, and prepare adjuse trial balance and financi

Question

ment on May 31 is as follows. post, and prepare adjuse trial balance and financial MAC'S MOTEL Trial Balance May 31, 2017 (Lo 2, 3, 4) Account Number 101 126 130 140 Debit Credit GLS Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 3,500 2,080 2,400 12,000 60,000 15,000 149 208 275 301 429 610 726 732 4,800 3,300 40,000 41,380 10,300 600 3,300 900 $99,780 $99 780 In addition to those accounts listed on the trial balance, the chart of accounts for Mac's Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, No. 150 Accumulated Depreciation-Equipment, No. 2 ries 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: 12 Sala- 1. Prepaid insurance is a 1-year policy starting May 1, 2017. 2. A count of supplies shows $750 of unused supplies on May 31. 3. Annual depreciation is $3,000 on the buildings and $1,500 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 $750 are accrued and unpaid at May 31.

Explanation / Answer

Hey there !!

Let us proceed step bt step to attempt this question.

In this question, we have to first Journalise the Adjusting entries. Then we have to prepare ledger account and then post these balances to Trial balance.

After the preparation of trial balance, we have to prepare income statement and owner's equity statement.

So let us start :)

Journal Entries:

Now, let us post these entries into trial balance.

Adjusted Trial Balance

I hope the solution is clear to you now.

Do let mew know in case of any concerns.

All the best !! Happy Studying !!

Date Accounts and Explanation Debit ($) Credit ($) Insurance Expense A/c Dr                    200 To Prepaid Insurance A/c Cr                               200 (being insurance expense booked ) Supplies Expense Dr                1,330 To Supplies A/c Cr                           1,330 Depreciation A/c Dr                3,000 Accumulate Dep A/c - Buildings Cr                           3,000 Depreciation A/c Dr                1,500 Accumulate Dep A/c - Equipments Cr                           1,500 Interest on Mortgage A/c Dr                    400 To Interest Payable on Mortgage Cr                               400 ( 12% * 1/12* 40,000) Unearned Rent Revenue Dr                2,200 Rent Revenue A/c Cr                           2,200 (2/3 * 3300) Salaries Expense A/c Dr                    750 To Salary Payable A/c Cr                               750

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.