The Olathe Hotel

Trial Balance
May 31, 2010
Debit Credit
Cash $2,500

Prepaid Insurance 1,800
Supplies 2,600
Land 15,000
Lodge 70,000
Furniture 16,800
Accounts Payable $4,700
Unearned Rent Revenue 3,300
Mortgage Payable 36,000
Common Stock 60,000
Rent Revenue 9,000
Salaries Expense 3,000
Utilities Expense 800
Advertising Expense

$113,000Other data: 
1. Insurance expires at the rate of $300 per month.
2. A count of supplies shows $1,050 of unused supplies on May 31.
3. Annual depreciation is $3,600 on the lodge and $3,000 on furniture.
4. The mortgage interest rate is 7%. (The mortgage was taken out on May 1.)
5. Unearned rent of $2,500 has been earned.
6. Salaries of $750 are accrued and unpaid at May 31.
step 1: journalize entries
step 2: Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting entries.
step 3:Complete the Adjusted Trial Balance as of May 31.
step 4: Complete the income statement and a retained earnings statement for the month of May and a classified balance sheet at May 31.
step 5: Indicate which accounts should be closed on May 31.

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