Acc290 Financial Accounting: P4-3A The Vang Hotel opened for business

Acc290 Financial Accounting 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.