Macs Motel opened for business on May 1 2017 Its trial balan

Mac\'s Motel opened for business on May 1, 2017. Its trial balance before adjustment on May 31 is as follows.

MAC\'S MOTEL
Trial Balance
May 31, 2017

In addition to those accounts listed on the trial balance, the chart of accounts for Mac\'s 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:

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

1.

2.Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.)

4. Prepare an income statement for the month of May 31.

5.

6. 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.)

Please help with however much is allowed. Please include any necessary calculations.

MAC\'S MOTEL Trial Balance May 31, 2017
Account Number				Debit		Credit
101		Cash		$ 3,500
126		Supplies		2,080
130		Prepaid Insurance		2,400
140		Land		12,000
141		Buildings		60,000
149		Equipment		15,000
201		Accounts Payable				$ 4,800
208		Unearned Rent Revenue				3,300
275		Mortgage Payable				40,000
301		Owner’s Capital				41,380
429		Rent Revenue				10,300
610		Advertising Expense		600
726		Salaries and Wages Expense		3,300
732		Utilities Expense		900
				$99,780		$99,780

Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation 1. May 31 Debit Credit 2. May 31 3. May 31 4. May 31 5. May 31 6. May 31

Solution

1.

2.

3.

4.

Per Chegg guidelines, 4 sub-parts have been answered.

No.	Date	Account Titles and Explanation	Debit	Credit
1	May-31	Insurance expense ($2400/12)	200
		Prepaid insurance		200
2	May-31	Supplies expense ($2080 - $750)	1330
		Supplies		1330
3	May-31	Depreciation expense	4500
		Accumulated depreciation-buildings		3000
		Accumulated depreciation-equipment		1500
4	May-31	Interest expense ($40000 x 12% x 1/12)	400
		Interest payable		400
5	May-31	Unearned rent revenue	2200
		Rent revenue ($3300 x 2/3)		2200
6	May-31	Salaries and wages expense	750
		Salaries and wages payable		750