ACC/290 ACC290 ACC 290 week 3 P4-3A (Graded A+) - 37208

Solution Posted by
arsalanahmed

arsalanahmed

Rating : (80)A
Solution Detail
Price: $4.00
  • From: Business,
  • Posted on: Sun 15 Dec, 2013
  • Request id: None
  • Purchased: 1 time(s)
  • Average Rating: No rating
Request Description

P4-3A      

 

The Olathe Hotel opened for business on May 1, 2010. Here is its trial balance before adjustment on May 31.

 

 

OLATHE HOTEL

Trial Balance

May 31, 2010

 

Debit

Credit

Cash

$  2,500

 

Prepaid Insurance

1,800

 

Supplies

2,600

 

Land

15,000

 

Lodge

70,000

 

Furniture

16,800

 

Accounts Payable

 

$  4,700

Unearned Rent Revenue

 

3,300

Mortgage Payable

 

36,000

Common Stock

 

60,000

Rent Revenue

 

9,000

Salaries Expense

3,000

 

Utilities Expense

800

 

Advertising Expense

500

 

 

$113,000

$113,000

 

Other data:

1.  

Insurance expires at the rate of $300 per month.

2.  

A count of supplies shows $1,050 of unused supplies on May 31.

3.  

Annual depreciation is $3,600 on the lodge and $3,000 on furniture.

4.  

The mortgage interest rate is 7%. (The mortgage was taken out on May 1.)

5.  

Unearned rent of $2,500 has been earned.

6.  

Salaries of $750 are accrued and unpaid at May 31.


Hint: Prepare adjusting entries, adjusted trial balance, and financial statements.

(SO 4567)

 

 

Instructions

(a)  

Journalize the adjusting entries on May 31.

(b)  

Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting entries.

(c)  

Prepare an adjusted trial balance on May 31.

Rent revenue $ 11,500

Tot. adj. trial balance $114,510

(d)  

Prepare an income statement and a retained earnings statement for the month of May and a classified balance sheet at May 31.

Net income $ 3,840

(e)  

Identify which accounts should be closed on May 31.

Solution Description

A++++++++++++++++++

Attachments
answer.docx
answer.docx