Cash
$7,630
Accounts receivable
13,080
Supplies
6,550
Prepaid insurance
4,565
Land
108,100
Buildings
170,160
Accumulated depreciation—building
$ 20,800
Furniture
34,620
Accumulated depreciation—furniture
15,670
Accounts payable
8,360
Unearned revenue
22,225
Mortgage payable, due in 2019
126,750
Common shares
62,700
Retained earnings
51,180
Dividends
2,870
Rent revenue
190,661
Salaries expense
98,670
Utilities expense
27,780
Interest expense
9,330
Insurance expense
6,391
Advertising expense
1,170
Income tax expense
7,430
$498,346
$498,346
Additional information:
1.
The annual insurance policy was purchased on October 1, 2014,for $10,956.
2.
A count of supplies shows $3,070 of supplies on hand on May31.
3.
The building has an estimated useful life of 20 years.
4.
The furniture has an estimated useful life of five years.
5.
Customers must pay a $127 deposit if they want to book a roomin advance during the peak period. An analysis of these bookingsindicates that 175 deposits were received and credited to UnearnedRevenue. By May 31, 25 of the deposits were earned.
6.
On May 25, a local business contracted with Rainbow Lodge torent one of its housekeeping units for four months, starting June1, at a rate of $2,900 per month. An advance payment equal to onemonth’s rent was paid on May 25 and credited to Rent Revenue.
7.
On May 31, Rainbow Lodge has earned $2,800 of rent revenue fromcustomers who are currently staying at the inn. The customers willonly pay the amount owing when they check out in early June.
8.
Salaries of $3,130 are unpaid at May 31.
9.
The mortgage interest rate is 8%. Interest has been paid to May1; the next payment is due June 1.
10.
The May utility bill of $4,850 has not yet been recorded orpaid.
11.
Aditional income tax is estimated to be $2,000.
12.
During the month of May, $6,000 of common shares wereissued.
Prepare the T-Accounts and the Journal Entries
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
