Additional information: 1. An annual insurance policy was purchased for the first time on October 1, 2020, for $10,080 cash. A count of supplies shows $1,471 of supplies on hand on May 31. 2. 3. The buildings have an estimated useful life of 20 years and straight-line depreciation is applied. 4. The furniture has an estimated useful life of five years and straight-line depreciation is applied. 5. Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An analysis of these bookings indicates that 175 deposits were received and credited to Deferred Revenue. By May 31, 25 of the deposits were earned. 6. On May 25, a local business contracted with Carla Vista Lodge to rent one of its housekeeping units for four months, starting June 1, at a rate of $3,079 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Income. 7. On May 31, Carla Vista Lodge has earned $1,800 of rent income from customers who are currently staying at the lodge. The customers will pay the amount owing only when they check out in early June. 8. Salaries of $1,562 are unpaid at May 31. 9. Interest on the mortgage payable is $735 for the month of May and due June 1. 10. The May utility bill of $2,021 has not yet been recorded or paid. 11. Additional income tax is estimated to be $1,030.
Additional information: 1. An annual insurance policy was purchased for the first time on October 1, 2020, for $10,080 cash. A count of supplies shows $1,471 of supplies on hand on May 31. 2. 3. The buildings have an estimated useful life of 20 years and straight-line depreciation is applied. 4. The furniture has an estimated useful life of five years and straight-line depreciation is applied. 5. Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An analysis of these bookings indicates that 175 deposits were received and credited to Deferred Revenue. By May 31, 25 of the deposits were earned. 6. On May 25, a local business contracted with Carla Vista Lodge to rent one of its housekeeping units for four months, starting June 1, at a rate of $3,079 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Income. 7. On May 31, Carla Vista Lodge has earned $1,800 of rent income from customers who are currently staying at the lodge. The customers will pay the amount owing only when they check out in early June. 8. Salaries of $1,562 are unpaid at May 31. 9. Interest on the mortgage payable is $735 for the month of May and due June 1. 10. The May utility bill of $2,021 has not yet been recorded or paid. 11. Additional income tax is estimated to be $1,030.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Question
Additional information:
Transcribed Image Text:Additional information:
1.
An annual insurance policy was purchased for the first time on October 1, 2020, for $10,080 cash.
A count of supplies shows $1,471 of supplies on hand on May 31.
2.
3.
The buildings have an estimated useful life of 20 years and straight-line depreciation is applied.
4.
The furniture has an estimated useful life of five years and straight-line depreciation is applied.
5.
Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An analysis of these
bookings indicates that 175 deposits were received and credited to Deferred Revenue. By May 31, 25 of the deposits were
earned.
6.
On May 25, a local business contracted with Carla Vista Lodge to rent one of its housekeeping units for four months, starting
June 1, at a rate of $3,079 per month. An advance payment equal to one month's rent was paid on May 25 and credited to
Rent Income.
7.
On May 31, Carla Vista Lodge has earned $1,800 of income from customers who are currently staying at the lodge. The
customers will pay the amount owing only when they check out in early June.
8.
Salaries of $1,562 are unpaid at May 31.
9.
Interest on the mortgage payable is $735 for the month of May and due June 1.
10.
The May utility bill of $2,021 has not yet been recorded or paid.
11.
Additional income tax is estimated to be $1,030.
acer
Transcribed Image Text:(a)
Prepare adjusting journal entries for the month. (List all debit entries before credit entries. Credit account titles are automatically
indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar. If no entry is required,
select "No Entry" for the account titles and enter 0 for the amounts.)
No Date Account Titles and Explanation
Debit
Credit
1.
May
31
2.
3.
4.
31
31
31
a
a
0
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