03/11/2024, 20:53 Question 2 of 2 - Homework: Chapter 3

Homework: Chapter 3

Question 2 of 2 10.29 / 50

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Sandhill's Hotel opened for business on May 1, 2022. Its trial balance before adjustment on May 31 is as follows.

SANDHILL'S HOTEL
Trial Balance
May 31, 2022

Account Number Debit Credit

101 Cash $ 3,600

126 Supplies 2,050

130 Prepaid Insurance 2,400

140 Land 14,000

141 Buildings 62,000

149 Equipment 15,000

200 Notes Payable $ 40,000

201 Accounts Payable 4,900

208 Unearned Rent Revenue 3,000

301 Owner’s Capital 41,100

429 Rent Revenue 14,850

610 Advertising Expense 550

726 Salaries and Wages Expense 3,300

732 Utilities Expense 950

$103,850 $103,850

In addition to those accounts listed on the trial balance, the chart of accounts for Sandhill’s Hotel also contains the following
accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—
Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies
Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

1. Prepaid insurance is a 1-year policy starting May 1, 2022.

2. A count of supplies shows $800 of unused supplies on May 31.

3. Annual depreciation is $3,720 on the buildings and $1,500 on equipment.

4. The note payable interest rate is 6%. (The note was taken out on May 1 and will be repaid along with interest in 1 year.)

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03/11/2024, 20:53 Question 2 of 2 - Homework: Chapter 3

5. Two-thirds of the unearned rent revenue has been earned.

Homework: Chapter 3
6. Salaries and wages of $800 are unpaid and unrecorded at May 31.

Question 2 of 2 10.29 / 50

(a)

 Your answer is correct.

Journalize the adjusting entries on May 31. (List all debit entries before credit entries. Credit account titles are automatically
indented when the amount is entered. Do not indent manually.)

No. Date Account Titles and Explanation Debit Credit

May
1. Insurance Expense 200
31

Prepaid Insurance

May
2. Supplies Expense 1250
31

Supplies

May
3. Depreciation Expense 435
31

Accumulated Depreciation-Buildings

Accumulated Depreciation-Equipment

May
4. Interest Expense 200
31

Interest Payable

May
5. Unearned Rent Revenue 2000
31

Rent Revenue

May
6. Salaries and Wages Expense 800
31

Salaries and Wages Payable

eTextbook and Media

List of Accounts

Attempts: 1 of 3 used

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03/11/2024, 20:53 Question 2 of 2 - Homework: Chapter 3

(b)Homework: Chapter 3

Question 2 of 2 10.29 / 50
 Your answer is partially correct.

Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and
then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question.)

Cash No. 101

Date Explanation Ref. Debit Credit Balance

May
Balance √ 4600 4600
31

Supplies No. 126

Date Explanation Ref. Debit Credit Balance

May
Balance √ 2050 2050
31

May
Adjusting J1 1250 800
31

Prepaid Insurance No. 130

Date Explanation Ref. Debit Credit Balance

May
Balance √ 2400 2400
31

May
Adjusting J1 200 2200
31

Land No. 140

Date Explanation Ref. Debit Credit Balance

May
Balance √ 14000 14000
31

Buildings No. 141

Date Explanation Ref. Debit Credit Balance

May
Balance √ 310 310
31

Accumulated
Depreciation— No. 142
Buildings

Date Explanation Ref. Debit Credit Balance

May
Adjusting J1 310 310
31

Equipment No. 149

Date Explanation Ref. Debit Credit Balance

May
Balance √ 15000 15000
31

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03/11/2024, 20:53 Question 2 of 2 - Homework: Chapter 3

Accumulated
Homework: Chapter 3
Depreciation— No. 150
Equipment
Question 2 of 2
Date Explanation Ref. Debit Credit
10.29 / 50
Balance

May
Adjusting J1 125 125
31

Accounts Payable No. 201

Date Explanation Ref. Debit Credit Balance

May
Balance √ 4900 -4900
31

Unearned Rent
No. 208
Revenue

Date Explanation Ref. Debit Credit Balance

May
Balance √ 3000 -3000
31

May
Adjusting J1 2000 -1000
31

Salaries and Wages

No. 212
Payable

Date Explanation Ref. Debit Credit Balance

May
Adjusting J1 0
31

Interest Payable No. 230

Date Explanation Ref. Debit Credit Balance

May
Adjusting J1 0
31

Notes Payable No. 200

Date Explanation Ref. Debit Credit Balance

May
Balance √ 0
31

Owner’s Capital No. 301

Date Explanation Ref. Debit Credit Balance

May
Balance √ 40000 40000
31

Rent Revenue No. 429

Date Explanation Ref. Debit Credit Balance

May
Balance √ 41100 41100
31

May
Adjusting J1
31

Advertising Expense No. 610

Date Explanation Ref. Debit Credit Balance

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03/11/2024, 20:53 Question 2 of 2 - Homework: Chapter 3

May
Homework: Chapter 3
Balance √ 14850 -14850
31

Depreciation
Question 2 of 2
Expense
10.29 / 50 No. 619

Date Explanation Ref. Debit Credit Balance

May
Adjusting J1 550 550
31

Supplies Expense No. 631

Date Explanation Ref. Debit Credit Balance

May
Adjusting J1 435 435
31

Interest Expense No. 718

Date Explanation Ref. Debit Credit Balance

May
Adjusting J1 1250 1250
31

Insurance Expense No. 722

Date Explanation Ref. Debit Credit Balance

May
Adjusting J1 125 125
31

Salaries and Wages

No. 726
Expense

Date Explanation Ref. Debit Credit Balance

May
Balance √
31

May
Adjusting J1 200 200
31

Utilities Expense No. 732

Date Explanation Ref. Debit Credit Balance

May
Balance √ 950
31

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List of Accounts

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(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.

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03/11/2024, 20:53 Question 2 of 2 - Homework: Chapter 3

Homework: Chapter 3
(d1)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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(d2)
The parts of this question must be completed in order. This part will be available when you complete the part above.

(d3)
The parts of this question must be completed in order. This part will be available when you complete the part above.

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