Problem 4-3A The Solo Hotel opened for business on May 1, 2014. Here is its tria

Question

Problem 4-3A

The Solo Hotel opened for business on May 1, 2014. Here is its trial balance before adjustment on May 31.

Debit

Credit

500

$115,560

$115,560

Other data:

Salaries of $649 are accrued and unpaid at May 31.

Prepare an income statement for the month of May.

Prepare a retained earnings statement for the month of May.

Prepare a classified balance sheet at May 31

SOLO HOTEL
Trial Balance
May 31, 2014

Debit

Credit

Cash $ 2,580 Supplies 2,600 Prepaid Insurance 1,800 Land 15,080 Buildings 72,400 Equipment 16,800 Accounts Payable $ 4,780 Unearned Rent Revenue 3,300 Mortgage Payable 38,400 Common Stock 60,080 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense

500

$115,560

$115,560

Explanation / Answer

income statement for the month of May Particulars Amount($) Rent Revenue 9000 Rent Earned for previous year 2693 Salaries and Wages Expense -3649 Utilities Expense -800 Advertising Expense -500 Insurance -5400 Supplies -1506 Depreciation -6600 Intereset -2304 Profit/ (Loss) -9066 Reatined Earnings =-9066

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