The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31. MOTO HOTEL
Trial Balance
May 31, 2017
Debit Credit
Cash $ 2,333
Supplies 2,600
Prepaid Insurance 1,800
Land 14,833
Buildings 71,200
Equipment 16,800
Accounts Payable $ 4,533
Unearned Rent Revenue 3,300
Mortgage Payable 37,200
Common Stock 59,833
Rent Revenue 9,000
Salaries and Wages Expense 3,000
Utilities Expense 800
Advertising Expense 500
$113,866 $113,866
Other data:
Insurance expires at the rate of $360 per month.
2. A count of supplies shows $1,150 of unused supplies on May 31.
3. (a) Annual depreciation is $3,600 on the building.
(b) Annual depreciation is $3,000 on equipment.
4. The mortgage interest rate is 5%. (The mortgage was taken out on May 1.)
5. Unearned rent of $2,630 has been earned.
6. Salaries of $750 are accrued and unpaid at May 31.
Journalize the adjusting entries on May 31.