Cullumber's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows Account Number 101 126 130 140 141 149 201 208 201 208 275 301 429 610 726 732 Cash CULLUMBER'S HOTEL Trial Balance May 31, 2020 Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable I Inearned Dent Ravenna Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 550 3,200 950 Debit $3,400 2,100 3,000 15,000 60,600 15,600 $4,800 3,300 40,000 41,200 15,100 Credit $4,800 2.300
Cullumber's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows Account Number 101 126 130 140 141 149 201 208 201 208 275 301 429 610 726 732 Cash CULLUMBER'S HOTEL Trial Balance May 31, 2020 Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable I Inearned Dent Ravenna Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 550 3,200 950 Debit $3,400 2,100 3,000 15,000 60,600 15,600 $4,800 3,300 40,000 41,200 15,100 Credit $4,800 2.300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Cullumber's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows
Account Number
1.
2.
3.
101
4.
126
5.
130
6.
140
141
149
201
208
201
208
275
301
429
Other data:
610
726
732
Cash
Supplies
Prepaid Insurance
Land
CULLUMBER'S HOTEL
Trial Balance
May 31, 2020
Buildings
Equipment
Accounts Payable
I Inearned Dent Revenue
Accounts Payable
Unearned Rent Revenue
Mortgage Payable
Owner's Capital
Rent Revenue
Advertising Expense
Salaries and Wages Expense
Utilities Expense
550
Add V:
3,200
Net Income /(Loss)
950
$104,400
707
Debit
$3,400
2,100
3.000
$
15,000
60,600
In addition to those accounts listed on the trial balance, the chart of accounts for Cullumber'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.
15,600
In addition to those accounts listed on the trial balance, the chart of accounts for Cullumber'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.
$4,800
3,300
40,000
41,200
15,100
$104,400
Prepaid insurance is a 1-year policy starting May 1, 2020.
A count of supplies shows $700 of unused supplies on May 31.
Annual depreciation is $3,636 on the buildings and $1,560 on equipment.
The mortgage at an annual interest rate is 6%. (The mortgage was taken out on May 1.)
Two-thirds of the unearned rent revenue has been earned.
Salaries of $700 are accrued and unpaid at May 31.
CULLUMBER'S HOTEL
Owner's Equity Statement
For the Month Ended May 31, 2020
Credit
$4,800
2.300
MI
[CO
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