03/11/2024, 22:24 Question 2 of 2 - Homework: Chapter 3

Homework: Chapter 3

Question 2 of 2 41.56 / 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, 22:24 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 41.56 / 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, 22:24 Question 2 of 2 - Homework: Chapter 3

(b)Homework: Chapter 3

Question 2 of 2 41.56 / 50
Your Answer Correct Answer (Used)

 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 31 Balance √ 3600

Supplies No. 126

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 2050 2050

May 31 Adjusting J1 1250 800

Prepaid Insurance No. 130

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 2400

May 31 Adjusting J1 200 2200

Land No. 140

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 14000

Buildings No. 141

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 62000

Accumulated
Depreciation— No. 142
Buildings

Date Explanation Ref. Debit Credit Balance

May 31 Adjusting J1 310 310

Equipment No. 149

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 15000

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03/11/2024, 22:24 Question 2 of 2 - Homework: Chapter 3

Accumulated
Homework: Chapter 3
Depreciation— No. 150
Equipment
Question 2 of 2
Date Explanation Ref. Debit Credit
41.56 / 50
Balance

May 31 Adjusting J1 125 125

Accounts Payable No. 201

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 4900

Unearned Rent
No. 208
Revenue

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 3000

May 31 Adjusting J1 2000 1000

Salaries and Wages

No. 212
Payable

Date Explanation Ref. Debit Credit Balance

May 31 Adjusting J1 800 800

Interest Payable No. 230

Date Explanation Ref. Debit Credit Balance

May 31 Adjusting J1 200 200

Notes Payable No. 200

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 40000

Owner’s Capital No. 301

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 41100

Rent Revenue No. 429

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 14850

May 31 Adjusting J1 2000 16850

Advertising Expense No. 610

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 550

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03/11/2024, 22:24 Question 2 of 2 - Homework: Chapter 3

Depreciation Expense No. 619

Homework: Chapter 3
Date Explanation Ref. Debit Credit Balance

Question 2 of 2 41.56 / 50
May 31 Adjusting J1 435 435

Supplies Expense No. 631

Date Explanation Ref. Debit Credit Balance

May 31 Adjusting J1 1250 1250

Interest Expense No. 718

Date Explanation Ref. Debit Credit Balance

May 31 Adjusting J1 200 200

Insurance Expense No. 722

Date Explanation Ref. Debit Credit Balance

May 31 Adjusting J1 200 200

Salaries and Wages

No. 726
Expense

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 3300

May 31 Adjusting J1 800 4100

Utilities Expense No. 732

Date Explanation Ref. Debit Credit Balance

May 31 Balance √ 950

eTextbook and Media

List of Accounts

Attempts: 3 of 3 used

(c)

 Your answer is correct.

Prepare an adjusted trial balance on May 31.

SANDHILL'S HOTEL
Adjusted Trial Balance
May 31, 2022

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03/11/2024, 22:24 Question 2 of 2 - Homework: Chapter 3

Debit Credit
Homework: Chapter 3
Cash $ 3600 $
Question 2 of 2 41.56 / 50
Supplies 800

Prepaid Insurance 2200

Land 14000

Buildings 62000

Accumulated Depreciation-Buildings 310

Equipment 15000

Accumulated Depreciation-Equipment 125

Accounts Payable 4900

Unearned Rent Revenue 1000

Salaries and Wages Payable 800

Interest Payable 200

Notes Payable 40000

Owner's Capital 41100

Rent Revenue 16850

Advertising Expense 550

Depreciation Expense 435

Supplies Expense 1250

Interest Expense 200

Insurance Expense 200

Salaries and Wages Expense 4100

Utilities Expense 950

Totals $ 105285 $ 105285

eTextbook and Media

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03/11/2024, 22:24 Question 2 of 2 - Homework: Chapter 3
List of Accounts
Homework: Chapter 3

Attempts: 2 of 3 used
Question 2 of 2 41.56 / 50

(d1)

 Your answer is correct.

Prepare an income statement for the month of May.

SANDHILL'S HOTEL
Income Statement
For the Month Ended May 31, 2022

Revenues

Rent Revenue $ 16850

Expenses

Advertising Expense $ 550 

Depreciation Expense 435 

Supplies Expense 1250 

Interest Expense 200 

Salaries and Wages Expense 4100 

Utilities Expense 950 

Insurance Expense 200 

Total Expenses 7685

Net Income / (Loss) $ 9165

eTextbook and Media

List of Accounts

Attempts: 2 of 3 used

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03/11/2024, 22:24 Question 2 of 2 - Homework: Chapter 3

Homework: Chapter 3
(d2)

Question 2 of 2 41.56 / 50
 Your answer is correct.

Prepare an owner’s equity statement for the month of May.

SANDHILL'S HOTEL
Owner's Equity Statement
For the Month Ended May 31, 2022

Owner's Capital, May 1 $ 0

Add :

Net Income / (Loss) 9165

Investment by Owner 41100

Owner's Capital, May 31 $ 50265

eTextbook and Media

List of Accounts

Attempts: 2 of 3 used

(d3)

Prepare a balance sheet at May 31. (List Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings
and Equipment.)

SANDHILL'S HOTEL
Balance Sheet
May 31, 2022

Assets

Cash $

Supplies

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03/11/2024, 22:24 Question 2 of 2 - Homework: Chapter 3

Homework::Chapter 3

Question 2 of 2 41.56 / 50
:

Liabilities and Owner’s Equity

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List of Accounts

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