The Sheridan Hotel opened for business on May 1, 2022. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $13,500 in the revenue column resulted from Rent Revenue. The $6,450 in the expense column includes Salaries and Wages $4,500, Utilities $1,200, and Advertising $750. ip. !00 = Liabilities + Stockholders' Equity Acc. Depr.- Unearn. Retained Earnings Accts. Int. Sal./Wages Rent. Mortg. Com. - Equip. = Pay. + Pay + Pay. + Rev. + Pay + Stock + Rev. Exp. - Div 0 = 7,050 + 0 + 0 + 4,950 + 54,000 + 90,000 + 13,500 6,450 0 (a) Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. Insurance expires at the rate of $675 per month. 2. A count of supplies shows $1,575 of unused supplies on May 31. 3. (a) Annual depreciation is $5,400 on the building. (b) Annual depreciation is $4,500 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Rental services related to unearned rent of $3,750 have been provided. 6. Salaries of $1,350 are accrued and unpaid at May 31. The Sheridan Hotel opened for business on May 1, 2022. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $13,500 in the revenue column resulted from Rent Revenue. The $6,450 in the expense column includes Salaries and Wages $4,500, Utilities $1,200, and Advertising $750. Assets = Prepd. Acc. Depr.- Acc. Depr.- Cash + Supplies + Insur. + Land + Bldgs. - Bldgs. + Equip. - Equip. = Accts. Pay. + Pay + Int. S Bal. 3,750 + 3,900 + 2,700 + 22,500 + 105,000 0 + 25,200 0 = 7,050 + 0 + (a) Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. Insurance expires at the rate of $675 per month. 2. A count of supplies shows $1,575 of unused supplies on May 31. 3. (a) Annual depreciation is $5,400 on the building. (b) Annual depreciation is $4,500 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Rental services related to unearned rent of $3,750 have been provided. 6. Salaries of $1,350 are accrued and unpaid at May 31.

The Sheridan Hotel opened for business on May 1, 2022. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $13,500 in the revenue column resulted from Rent Revenue. The $6,450 in the expense column includes Salaries and Wages $4,500, Utilities $1,200, and Advertising $750. ip. !00 = Liabilities + Stockholders' Equity Acc. Depr.- Unearn. Retained Earnings Accts. Int. Sal./Wages Rent. Mortg. Com. - Equip. = Pay. + Pay + Pay. + Rev. + Pay + Stock + Rev. Exp. - Div 0 = 7,050 + 0 + 0 + 4,950 + 54,000 + 90,000 + 13,500 6,450 0 (a) Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. Insurance expires at the rate of $675 per month. 2. A count of supplies shows $1,575 of unused supplies on May 31. 3. (a) Annual depreciation is $5,400 on the building. (b) Annual depreciation is $4,500 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Rental services related to unearned rent of $3,750 have been provided. 6. Salaries of $1,350 are accrued and unpaid at May 31. The Sheridan Hotel opened for business on May 1, 2022. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $13,500 in the revenue column resulted from Rent Revenue. The $6,450 in the expense column includes Salaries and Wages $4,500, Utilities $1,200, and Advertising $750. Assets = Prepd. Acc. Depr.- Acc. Depr.- Cash + Supplies + Insur. + Land + Bldgs. - Bldgs. + Equip. - Equip. = Accts. Pay. + Pay + Int. S Bal. 3,750 + 3,900 + 2,700 + 22,500 + 105,000 0 + 25,200 0 = 7,050 + 0 + (a) Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. Insurance expires at the rate of $675 per month. 2. A count of supplies shows $1,575 of unused supplies on May 31. 3. (a) Annual depreciation is $5,400 on the building. (b) Annual depreciation is $4,500 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Rental services related to unearned rent of $3,750 have been provided. 6. Salaries of $1,350 are accrued and unpaid at May 31.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

See similar textbooks