Acc280 Financial Accounting: P4-3A Olathe Hotel opened for business on May 1, 2010

Acc280 Financial Accounting P4-3A Olathe Hotel opened for business on May 1, 2010. Here is its trial balance before adjustment on May 31.? OLATHE HOTEL Trial Balance May 31, 2010 Debit Credit Cash 2,500 Prepaid Insurance 1,800 Supplies 2,600 Land 15,000 Lodge 70,000 Furniture 16,800 Accounts Payable 4,700 Unearned Rent Revenue 3,300 Mortgage Payable 36,000 Common Stock 60,000 Rent Revenue 9,000 Salaries Expense 3,000 Utilities Expense 800 Advertising Expense 500 113,000 113,000 Other data: 1. Insurance expires at the rate of $300 per month. 2. A count of supplies shows $1,050 of unused supplies on May 31. 3. Annual depreciation is $3,600 on the lodge and $3,000 on furniture. 4. The mortgage interest rate is 7%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,500 has been earned. 6. Salaries of $750 are accrued and unpaid at May 31. Instructions: 1. Journalize entries 2. Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. 3. Complete the Adjusted Trial Balance as of May 31. 4. Complete the income statement and a retained earnings statement for the month of May and a classified balance sheet at May 31 5. Indicate which accounts should be closed on May 31.
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