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question debit credit 500 116 672 116 672 journalize the adjusting entries on may 31 4286122

Question

Debit

Credit

500

$116,672

$116,672

Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

The Solo Hotel opened for business on May 1, 2014. Here is its trial balance before adjustment on May 31.

SOLO HOTEL

Trial Balance

May 31, 2014

 

 

Debit

 

Credit

Cash

 

$ 2,536

 

 

Supplies

 

2,600

 

 

Prepaid Insurance

 

1,800

 

 

Land

 

15,036

 

 

Buildings

 

73,600

 

 

Equipment

 

16,800

 

 

Accounts Payable

 

 

 

$ 4,736

Unearned Rent Revenue

 

 

 

3,300

Mortgage Payable

 

 

 

39,600

Common Stock

 

 

 

60,036

Rent Revenue

 

 

 

9,000

Salaries and Wages Expense

 

3,000

 

 

Utilities Expense

 

800

 

 

Advertising Expense

 

500

 

 

 

 

$116,672

 

$116,672

         

 

Other data:

1.

 

Insurance expires at the rate of $360 per month.

2.

 

A count of supplies shows $1,070 of unused supplies on May 31.

3.

 

(a) Annual depreciation is $3,840 on the building.

 

 

(b) Annual depreciation is $3,720 on equipment.

4.

 

The mortgage interest rate is 5%. (The mortgage was taken out on May 1.)

5.

 

Unearned rent of $2,688 has been earned.

6.

 

Salaries of $651 are accrued and unpaid at May 31.

 

 

 

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