Mac\'s Motel opened for business on May 1, 2017. Its trial balance before adjust

Question

Mac's Motel opened for business on May 1, 2017. Its trial balance before adjustment on May 31 is as follows.

MAC'S MOTEL
Trial Balance
May 31, 2017

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. 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:

Salaries of $750 are accrued and unpaid at May 31.

1.

2.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. (Post entries in the order of journal entries posted in the previous part of the question.)

4. Prepare an income statement for the month of May 31.

5.

6. Prepare a balance sheet at May 31. (List Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

Please help with however much is allowed. Please include any necessary calculations.

MAC'S MOTEL
Trial Balance
May 31, 2017

Account Number Debit Credit 101 Cash $ 3,500 126 Supplies 2,080 130 Prepaid Insurance 2,400 140 Land 12,000 141 Buildings 60,000 149 Equipment 15,000 201 Accounts Payable $ 4,800 208 Unearned Rent Revenue 3,300 275 Mortgage Payable 40,000 301 Owner’s Capital 41,380 429 Rent Revenue 10,300 610 Advertising Expense 600 726 Salaries and Wages Expense 3,300 732 Utilities Expense 900      $99,780 $99,780 Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation 1. May 31 Debit Credit 2. May 31 3. May 31 4. May 31 5. May 31 6. May 31

Explanation / Answer

1.

2.

3.

4.

Per Chegg guidelines, 4 sub-parts have been answered.

No. Date Account Titles and Explanation Debit Credit 1 May-31 Insurance expense ($2400/12) 200 Prepaid insurance 200 2 May-31 Supplies expense ($2080 - $750) 1330 Supplies 1330 3 May-31 Depreciation expense 4500 Accumulated depreciation-buildings 3000 Accumulated depreciation-equipment 1500 4 May-31 Interest expense ($40000 x 12% x 1/12) 400 Interest payable 400 5 May-31 Unearned rent revenue 2200 Rent revenue ($3300 x 2/3) 2200 6 May-31 Salaries and wages expense 750 Salaries and wages payable 750

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