The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.
MOTO HOTEL Trial Balance May 31, 2017 |
|
|
Debit |
|
Credit
|
Cash |
|
$ 2,613 |
|
|
|
|
Supplies |
|
2,600 |
|
|
|
|
Prepaid Insurance |
|
1,800 |
|
|
|
|
Land |
|
15,113 |
|
|
|
|
Buildings |
|
70,000 |
|
|
|
|
Equipment |
|
16,800 |
|
|
|
|
Accounts Payable |
|
|
|
|
$ 4,813 |
|
Unearned Rent Revenue |
|
|
|
|
3,300 |
|
Mortgage Payable |
|
|
|
|
36,000 |
|
Common Stock |
|
|
|
|
60,113 |
|
Rent Revenue |
|
|
|
|
9,000 |
|
Salaries and Wages Expense |
|
3,000 |
|
|
|
|
Utilities Expense |
|
800 |
|
|
|
|
Advertising Expense |
|
500
|
|
|
|
|
|
|
$113,226
|
|
|
$113,226
|
|
Other data:
1. |
|
Insurance expires at the rate of $360 per month. |
2. |
|
A count of supplies shows $1,180 of unused supplies on May 31. |
3. |
|
(a) Annual depreciation is $2,760 on the building. |
|
|
(b) Annual depreciation is $2,160 on equipment. |
4. |
|
The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) |
5. |
|
Unearned rent of $2,670 has been earned. |
6. |
|
Salaries of $710 are accrued and unpaid at May 31. |
|