YOU GET WORD DOCUMENT SOLUTION
The Solo Hotel opened for business on May 1, 2014. Here is its trial balance before adjustment on May 31.
1. Insurance expires at the rate of $360 per month.
2. A count of supplies shows $1,157 of unused supplies on May 31.
3. (a) Annual depreciation is $3,840 on the building.
(b) Annual depreciation is $3,720 on equipment.
4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
5. Unearned rent of $2,522 has been earned.
6. Salaries of $805 are accrued and unpaid at May 31.
Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. (Post entries in the order of journal entries presented in the previous question.)
Prepare an adjusted trial balance on 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. (List current assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment .)