Reference no: EM132759844

Question - The Sandhill Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.

SANDHILL HOTEL Trial Balance May 31, 2022

Cash $2,463

Supplies 2,600

Prepaid Insurance 1,800

Land 14,963

Buildings 71,200

Equipment 16,800

Accounts Payable 4,663

Unearned Rent Revenue 3,300

Mortgage Payable 37,200

Common Stock 59,963

Rent Revenue 9,000

Salaries and Wages Exp. 3,000

Utilities Expense 800

Advertising Expense 500

$114,126 $114,126

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 $3,000 on the building.

(b) Annual depreciation is $2,400 on equipment.

4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)

5. Unearned rent of $2,510 has been earned.

6. Salaries of $860 are accrued and unpaid at May 31.

Required -

A) Journalize the adjusting entries on May 31. If there is no entry required, just type in "No Entry" for the account titles and enter 0 for the amounts.

B) After drawing the T-accounts for the journal entries, draw up an adjusted trial balance on May 31.

C) Draw up an income statement for the month of May.

D) Draw up a retained earnings statement for the month of May.

E) Draw up the balance sheet at May 31. List the current assets in order of liquidity. List the Property, Plant and Equipment in order of Land, Buildings and Equipment.

F) Out of the following accounts, which ones should be closed on May 31 : Cash, Supplies, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Unearned Rent Revenue, Mortgage Payable, Common stock, Rent revenue, Salaries and wages expense, Utilities Expense, Advertising expense, Interest expense, Insurance expense, Supplies expense, Depreciation expense?