The Solo Hotel opened for business on May 1, 2014. Here is its trial balance bef
ID: 2425317 • Letter: T
Question
The Solo Hotel opened for business on May 1, 2014. Here is its trial balance before adjustment on May 31.
(Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries)
Debit
Credit
500
$119,942
$119,942
Other data:
Salaries of $690 are accrued and unpaid at May 31.
SOLO HOTELTrial Balance
May 31, 2014
Debit
Credit
Cash $ 2,971 Supplies 2,600 Prepaid Insurance 1,800 Land 15,471 Buildings 76,000 Equipment 16,800 Accounts Payable $ 5,171 Unearned Rent Revenue 3,300 Mortgage Payable 42,000 Common Stock 60,471 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense500
$119,942
$119,942
Explanation / Answer
Cash account
Particulars
Amount
Particulars
Amount
Balance B/d
2971
Supplies account
Particulars
Amount
Particulars
Amount
Balance B/d
2600
Supplies expense
1473
Balance c/d
1127
Prepaid insurance account
Particulars
Amount
Particulars
Amount
Balance B/d
1800
Insurance expense
300
Balance c/d
1500
Building account
Particulars
Amount
Particulars
Amount
Balance B/d
76000
Depreciation
4080
Balance c/d
71920
equipment account
Particulars
Amount
Particulars
Amount
Balance B/d
16800
Depreciation
3960
Balance c/d
12840
Account payable account
Particulars
Amount
Particulars
Amount
Balance B/d
5171
Balance c/d
5171
Unearned Rent Revenue account
Particulars
Amount
Particulars
Amount
Rent revenue
737
Balance B/d
3300
Balance c/d
2563
Mortgage Payable account
Particulars
Amount
Particulars
Amount
Balance B/d
42000
Balance C/d
42175
Interest
175
Common Stock account
Particulars
Amount
Particulars
Amount
Balance B/d
60471
Balance c/d
60471
Profit and loss account
Particulars
Amount
Particulars
Amount
Wages and salaries
3000
Rent revenue
9737
Add- outstanding wages and salaries
690
Utilities expense
800
Advertising expense
500
Depreciation on building
400
Deprecation on equipment
3960
Profit
387
Cash account
Particulars
Amount
Particulars
Amount
Balance B/d
2971
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