This question has been answered by Expert on Oct 3, 2011. View Solution
derekharrison22 posted a question
The Vang Hotel opened for business on May 1, 2012
ACCOUNTING

ACC 290 Week 3 Assignment

P4-3A The Vang Hotel opened for business on May 1, 2012. Here is its trial balance before adjustment on May 31.

VANG HOTEL
Trial Balance
May 31, 2012
Debit Credit
Cash $ 2,500
Prepaid Insurance 1,800
Supplies 2,600
Land 15,000
Buildings 70,000
Equipment 16,800
Accounts Payable $ 4,700
Unearned Rent Revenue 3,300
Mortgage Payable 36,000
Common Stock 60,000
Rent Revenue 9,000
Salaries and Wages Expense 3,000
Utilities Expense 800
Advertising Expense 500
$113,000 $113,000

Other data:
1. Insurance expires at the rate of $450 per month.
2. A count of supplies shows $1,050 of unused supplies on May 31.
3. Annual depreciation is $3,600 on the building and $3,000 on equipment.
4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
5. Unearned rent of $2,500 has been earned.
6. Salaries of $900 are accrued and unpaid at May 31.

Instructions
(a) Journalize the adjusting entries on May 31.
(b) Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting entries.
(c) Prepare an adjusted trial balance on May 31.
(d) Prepare an income statement and a retained earnings statement for the month of May and a classified balance sheet at May 31.
(e) Identify which accounts should be closed on May 31.

Click here
Expert answered the question
Dear Student

Please find...  View Full Answer

Download Preview:

Question:
The Vang Hotel opened for business on May 1, 2012. Here is its trial balance before adjustment on
May 31.
VANG HOTEL
Trial Balance
May 31, 2012
Debit Credit
Cash $ 2,500
Prepaid Insurance...