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Adjusting Entries for Hank's Hotel

Hank's Hotel opened for business on May 1, 2022, with a trial balance of $99,680 as of May 31, 2022. The document outlines necessary adjustments including prepaid insurance, unused supplies, depreciation, unearned rent revenue, and unpaid salaries. Instructions are provided for journalizing adjusting entries, preparing an adjusted trial balance, and creating financial statements for May.

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nhatminh08102006
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66 views2 pages

Adjusting Entries for Hank's Hotel

Hank's Hotel opened for business on May 1, 2022, with a trial balance of $99,680 as of May 31, 2022. The document outlines necessary adjustments including prepaid insurance, unused supplies, depreciation, unearned rent revenue, and unpaid salaries. Instructions are provided for journalizing adjusting entries, preparing an adjusted trial balance, and creating financial statements for May.

Uploaded by

nhatminh08102006
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

ChapterHotel

Hank’s 3 - Analyze
opened adjusted data.
for business on May 1, 2022. Its trial
balance before adjustment on May 31 is as follows

Hank's Hotel
Trial Balance
31-May-22

Account number Debit


101 Cash $3,400
126 Supplies $2,080
130 Prepaid Insurance $2,400
140 Land $12,000
141 Buildings $60,000
149 Equipment $15,000
200 Notes Payable
201 Accounts Payable
208 Unearned Rent Revenue
301 Owner’s Capital
429 Rent Revenue
610 Advertising Expense $600
726 Salaries and Wages Expense $3,300
732 Utilities Expense $900
$99,680

In addition to those accounts listed on the trial balance, the chart of accounts for Hank’s Hotel also contain
numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment
No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Exp

Other data:
(1) Prepaid insurance is a 1­year policy starting May 1, 2022.
(2) Account of supplies shows $750 of unused supplies on May 31
(3) Annual
The depreciation
note is $3,600
payable interest rate on the buildings
is 6%. (The noteand
was$1,500 on equipment.
taken out on May 1 and will be repaid along
(4) interest in 1 year.)
(5) Two­thirds of the unearned rent revenue has been earned.
(6) Salaries and wages of $750 are unpaid and unrecorded at May 31.

Instructions:
(a) Journalize
Prepare the adjusting
a ledger entries
using the on
three­ May 31.
column form of account. Enter the trial balance amounts and pos
(b) the adjusting entries.
(Use J1 as the posting reference.)
(c) Prepare an adjusted trial balance on May 31.
(d) Prepare an income statement and an owner’s equity statement for the month of May and a balan
Credit

$40,000
$4,700
$3,300
$41,380
$10,300

$99,680

for Hank’s Hotel also contains the following accounts and account
ed Depreciation—Equipment, No. 212 Salaries and Wages Payable,
xpense, No. 718 Interest Expense, and No. 722 Insurance Expense

ay 1 and will be repaid along with

rial balance amounts and post

he month of May and a balance sheet at May 31

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