A Prepare a balance sheet at May 31 List Assets in order of

A: Prepare a balance sheet at May 31. (List Assets in order of liquidity. List Property, plant and equipment in order of land, buildings and equipment. Round answers to 0 decimal places, e.g. 5,275.)

B: Prepare an income statement for the month of May 31. (Round answers to 0 decimal places, e.g. 5,275.)

The Skyline Motel opened for business on May 1, 2017. Its trial balance before adjustment on May 31 is as follows.

SKYLINE MOTEL
Trial Balance
May 31, 2017

In addition to those accounts listed on the trial balance, the chart of accounts for Skyline Motel 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.

Other data:

SKYLINE MOTEL Trial Balance May 31, 2017
Account Number				Debit		Credit
101		Cash		$ 3,600
126		Supplies		2,050
130		Prepaid Insurance		3,000
140		Land		12,000
141		Buildings		62,400
149		Equipment		15,400
201		Accounts Payable				$ 11,700
208		Unearned Rent Revenue				3,000
275		Mortgage Payable				40,000
311		Common Stock				36,000
429		Rent Revenue				12,500
610		Advertising Expense		600
726		Salaries and Wages Expense		3,300
732		Utilities Expense		850
				$103,200		$103,200

Solution

Working No. Date Account Titles and Explanation Debit Credit 1 31-May Insurance Expense 250 Prepaid Insurance (3000/12) 250 (To expired insurance) 2 31-May Supplies expenses (2050-800) 1,250 Supplies 1,250 (To record supplies used) 3 31-May Depreciation Expense 4,656 Accumulated Depreciation—Buildings, 3,120 Accumulated Depreciation—Equipment 1536 4 31-May Interest Expense (40000*12%*1/12) 400 Interest Payable 400 (To record interest accrued on the note) 5 31-May Unearned Rent Revenue 2,000 Rent Revenue (3000*2/3) 2,000 (To record service revenue earned) 6 31-May Salaries and Wages Expense 800 Salaries and Wages Payable 800 (To record accrued wages) ans Income Statement For the year ended May 31 2017 Rent Revenue 14,500 Less: Operating expenses Salaries and Wages Expense 4,100 Insurance Expense 250 Depreciation Expense 4,656 Supplies Expense 1,250 Advertising expenses 600 Utilities expenses 850 Total operating expenses 11,706 Net Operating Income 2,794 Interest Expense 400 Net Income 2,394 ans Balance Sheet For the year ended May 31 2017 Assets Current Assets Cash $3,600 Supplies $800 Prepaid Insurance $2,750 Total current assets $7,150 Property Plant & Equipment Land 12000 Building 62,400 Accumulated Depreciation-Building $3,120 $59,280 Equipment 15,400 Accumulated Depreciation-Equipment $1,536 $13,864 Total Property Plant & Equipment $85,144 Total Assets $92,294 Liabilities & Stockholder Equity Current Liabilities Accounts Payable 11,700 Interest Payable 400 Unearned Service Revenue 1,000 Salaries and Wages Payable 800 Total Current Liabilities 13,900 Mortgage Payable 40,000 Total Liabilities 53,900 Stockholder Equity Common Stock 36000 Retained Earnings 2,394 Total Stockholder Equity 38,394 Total Liabilities & Stockholder Equity 92,294