Blossom's Motel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. BLOSSOM'S MOTEL Trial Balance May 31, 2020 Account Number Debit Credit 101 Cash $ 3,400 126 Supplies 2,000 130 Prepaid Insurance 1,800 140 Land 12,000 141 Buildings 58,800 149 Equipment 14,400 201 Accounts Payable $ 4,700 208 Unearned Rent Revenue 3,000 275 Mortgage Payable 40,000 301 Owner’s Capital 41,000 429 Rent Revenue 8,300 610 Advertising Expense 550 726 Salaries and Wages Expense 3,200 732 Utilities Expense 850 $97,000 $97,000 In addition to those accounts listed on the trial balance, the chart of accounts for Hank’s Hotel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data: 1. Prepaid insurance is a 1-year policy starting May 1, 2020. 2. A count of supplies shows $700 of unused supplies on May 31. 3. Annual depreciation is $3,528 on the buildings and $1,440 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue has been earned. 6. Salaries of $700 are accrued and unpaid at May 31. Journalize the adjusting entries on May 31. No. Date Account Titles and Explanation Debit Credit 1. May 31 2. May 31 3. May 31 4. May 31 5. May 31 6. May 31 Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.) Cash No. 101 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Supplies No. 126 Date Explanation Ref. Debit Credit Balance May 31 Balance √ May 31 Adjusting J1 Prepaid Insurance No. 130 Date Explanation Ref. Debit Credit Balance May 31 Balance √ May 31 Adjusting J1 Land No. 140 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Buildings No. 141 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Accumulated Depreciation—Buildings No. 142 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Equipment No. 149 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Accumulated Depreciation—Equipment No. 150 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Unearned Rent Revenue No. 208 Date Explanation Ref. Debit Credit Balance May 31 Balance √ May 31 Adjusting J1 Salaries and Wages Payable No. 212 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Interest Payable No. 230 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Mortgage Payable No. 275 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Owner’s Capital No. 301 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Rent Revenue No. 429 Date Explanation Ref. Debit Credit Balance May 31 Balance √ May 31 Adjusting J1 Advertising Expense No. 610 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Depreciation Expense No. 619 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Supplies Expense No. 631 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Interest Expense No. 718 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Insurance Expense No. 722 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Salaries and Wages Expense No. 726 Date Explanation Ref. Debit Credit Balance May 31 Balance √ May 31 Adjusting J1 Utilities Expense No. 732 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Prepare an adjusted trial balance on May 31. BLOSSOM'S MOTEL Adjusted Trial Balance May 31, 2020For the Year Ended May 31, 2020For the Month Ended May 31, 2020 Debit Credit $ $ Totals $ $

Blossom's Motel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. BLOSSOM'S MOTEL Trial Balance May 31, 2020 Account Number Debit Credit 101 Cash $ 3,400 126 Supplies 2,000 130 Prepaid Insurance 1,800 140 Land 12,000 141 Buildings 58,800 149 Equipment 14,400 201 Accounts Payable $ 4,700 208 Unearned Rent Revenue 3,000 275 Mortgage Payable 40,000 301 Owner’s Capital 41,000 429 Rent Revenue 8,300 610 Advertising Expense 550 726 Salaries and Wages Expense 3,200 732 Utilities Expense 850 $97,000 $97,000 In addition to those accounts listed on the trial balance, the chart of accounts for Hank’s Hotel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data: 1. Prepaid insurance is a 1-year policy starting May 1, 2020. 2. A count of supplies shows $700 of unused supplies on May 31. 3. Annual depreciation is $3,528 on the buildings and $1,440 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Two-thirds of the unearned rent revenue has been earned. 6. Salaries of $700 are accrued and unpaid at May 31. Journalize the adjusting entries on May 31. No. Date Account Titles and Explanation Debit Credit 1. May 31 2. May 31 3. May 31 4. May 31 5. May 31 6. May 31 Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.) Cash No. 101 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Supplies No. 126 Date Explanation Ref. Debit Credit Balance May 31 Balance √ May 31 Adjusting J1 Prepaid Insurance No. 130 Date Explanation Ref. Debit Credit Balance May 31 Balance √ May 31 Adjusting J1 Land No. 140 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Buildings No. 141 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Accumulated Depreciation—Buildings No. 142 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Equipment No. 149 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Accumulated Depreciation—Equipment No. 150 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Unearned Rent Revenue No. 208 Date Explanation Ref. Debit Credit Balance May 31 Balance √ May 31 Adjusting J1 Salaries and Wages Payable No. 212 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Interest Payable No. 230 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Mortgage Payable No. 275 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Owner’s Capital No. 301 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Rent Revenue No. 429 Date Explanation Ref. Debit Credit Balance May 31 Balance √ May 31 Adjusting J1 Advertising Expense No. 610 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Depreciation Expense No. 619 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Supplies Expense No. 631 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Interest Expense No. 718 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Insurance Expense No. 722 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 Salaries and Wages Expense No. 726 Date Explanation Ref. Debit Credit Balance May 31 Balance √ May 31 Adjusting J1 Utilities Expense No. 732 Date Explanation Ref. Debit Credit Balance May 31 Balance √ Prepare an adjusted trial balance on May 31. BLOSSOM'S MOTEL Adjusted Trial Balance May 31, 2020For the Year Ended May 31, 2020For the Month Ended May 31, 2020 Debit Credit $ $ Totals $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Blossom's Motel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows.

BLOSSOM'S MOTEL Trial Balance May 31, 2020
Account Number		Debit	Credit
101	Cash	$ 3,400
126	Supplies	2,000
130	Prepaid Insurance	1,800
140	Land	12,000
141	Buildings	58,800
149	Equipment	14,400
201	Accounts Payable		$ 4,700
208	Unearned Rent Revenue		3,000
275	Mortgage Payable		40,000
301	Owner’s Capital		41,000
429	Rent Revenue		8,300
610	Advertising Expense	550
726	Salaries and Wages Expense	3,200
732	Utilities Expense	850
		$97,000	$97,000

In addition to those accounts listed on the trial balance, the chart of accounts for Hank’s Hotel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

1.		Prepaid insurance is a 1-year policy starting May 1, 2020.
2.		A count of supplies shows $700 of unused supplies on May 31.
3.		Annual depreciation is $3,528 on the buildings and $1,440 on equipment.
4.		The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
5.		Two-thirds of the unearned rent revenue has been earned.
6.		Salaries of $700 are accrued and unpaid at May 31.

Journalize the adjusting entries on May 31.

No.	Date	Account Titles and Explanation	Debit	Credit
1.	May 31

2.	May 31

3.	May 31


4.	May 31

5.	May 31

6.	May 31

Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.)

Cash				No. 101
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Supplies				No. 126
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J1
Prepaid Insurance				No. 130
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J1
Land				No. 140
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Buildings				No. 141
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Accumulated Depreciation—Buildings				No. 142
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J1
Equipment				No. 149
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Accumulated Depreciation—Equipment				No. 150
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J1
Accounts Payable				No. 201
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Unearned Rent Revenue				No. 208
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J1
Salaries and Wages Payable				No. 212
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J1
Interest Payable				No. 230
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J1
Mortgage Payable				No. 275
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Owner’s Capital				No. 301
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Rent Revenue				No. 429
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J1
Advertising Expense				No. 610
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
Depreciation Expense				No. 619
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J1
Supplies Expense				No. 631
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J1
Interest Expense				No. 718
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J1
Insurance Expense				No. 722
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Adjusting	J1
Salaries and Wages Expense				No. 726
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√
May 31	Adjusting	J1
Utilities Expense				No. 732
Date	Explanation	Ref.	Debit	Credit	Balance
May 31	Balance	√

Prepare an adjusted trial balance on May 31.

BLOSSOM'S MOTEL Adjusted Trial Balance May 31, 2020For the Year Ended May 31, 2020For the Month Ended May 31, 2020
	Debit	Credit
	$	$





















Totals	$	$

The last 3 parts are in the images.

Prepare an income statement for the month of May.
BLOSSOM'S MOTEL
Income Statement
htps://edugen.wileyplus.comvedugeristudentimainfr.uni
5/7
11/302020
Practice Problem 1
Prepare an owner's equity statement for the month of May.
BLOSSOM'S MOTEL
Owner's Equity Statement
%24

Prepare a balance sheet at May 31. (List Assets in order of liquidity. List Property, Plant and Equipment in
order of Land, Buildings and Equipment.)
BLOSSOM'S MOTEL
Balance Sheet
Assets
Liabilities and Owner's Equity
hitps:/lledugen wilegplus.com/edugen/studentmaintr.uni
67
Practice Problem 1
11/30/2020
>
>

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.