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SKYLINE MOTEL Trial Balance May 31, 2017 No. Date Account Titles and Explanation

ID: 2406464 • Letter: S

Question

SKYLINE MOTEL
Trial Balance
May 31, 2017

No.

Date

Account Titles and Explanation

Debit

Credit

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. Round answers to 0 decimal places, e.g. 5,275.)

Cash

No. 101

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

Supplies

No. 126

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

May 31

Adjusting

J1

Prepaid Insurance

No. 130

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

May 31

Adjusting

J1

Land

No. 140

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

Buildings

No. 141

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

Accumulated Depreciation—Buildings

No. 142

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Adjusting

J1

Equipment

No. 149

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

Accumulated Depreciation—Equipment

No. 150

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Adjusting

J1

Accounts Payable

No. 201

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

Unearned Rent Revenue

No. 208

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

May 31

Adjusting

J1

Salaries and Wages Payable

No. 212

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Adjusting

J1

Interest Payable

No. 230

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Adjusting

J1

Mortgage Payable

No. 275

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

Common Stock

No. 311

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

Rent Revenue

No. 429

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

May 31

Adjusting

J1

Advertising Expense

No. 610

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

Depreciation Expense

No. 619

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Adjusting

J1

Supplies Expense

No. 631

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Adjusting

J1

Interest Expense

No. 718

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Adjusting

J1

Insurance Expense

No. 722

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Adjusting

J1

Salaries and Wages Expense

No. 726

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

May 31

Adjusting

J1

Utilities Expense

No. 732

Date

Explanation

Ref

Debit

Credit

Balance

May 31

Balance

?

Debit

Credit

Prepare an income statement for the month of May 31. (Round answers to 0 decimal places, e.g. 5,275.)

Prepare an retained earnings statement for the month of May 31. (Round answers to 0 decimal places, e.g. 5,275.)

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. Round answers to 0 decimal places, e.g. 5,275.)

Assets

Liabilities and Stockholders' Equity

The Skyline Motel opened for business on May 1, 2017. Its trial balance before adjustment on May 31 is as follows.

SKYLINE MOTEL
Trial Balance
May 31, 2017

Account Number Debit Credit 101 Cash $ 3,600 126 Supplies 2,150 130 Prepaid Insurance 1,800 140 Land 12,000 141 Buildings 60,400 149 Equipment 14,500 201 Accounts Payable $ 11,800 208 Unearned Rent Revenue 3,100 275 Mortgage Payable 40,000 311 Common Stock 35,500 429 Rent Revenue 8,950 610 Advertising Expense 650 726 Salaries and Wages Expense 3,300 732 Utilities Expense 950 $99,350 $99,350
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, 2017. 2. A count of supplies shows $800 of unused supplies on May 31. 3. Annual depreciation is $3,024 on the buildings and $1,452 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 $700 are accrued and unpaid at 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 ($1800 x 1/12) 150 Prepaid insurance 150 (To record expired insurance) 2 May-31 Supplies expense 1350 Supplies ($2150 - $800) 1350 (To record supplies used) 3 May-31 Depreciation expense 4476 Accumulated depreciation-buildings 3024 Accumulated depreciation-equipment 1452 (To record depreciation expense) 4 May-31 Interest expense ($40000 x 12% x 1/12) 400 Interest payable 400 (To record accrued interest) 5 May-31 Unearned rent revenue 2067 Rent revenue ($3100 x 2/3) 2067 (To record rent revenue earned) 6 May-31 Salaries and wages expense 700 Salaries and wages payable 700 (To record accrued and unpaid salaries)