HW2 - Homework 2 for Accounting 101 PDF

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Homework 2 for Accounting 101...

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Sandhill's Hotel opened for business on May 1, 2020. Its trial balance before adjustment on May 31 is as follows. ORIOLE'S HOTEL Trial Balance May 31, 2020 Account Number

Debit

Credit

101

Cash

$3,600

126

Supplies

2,100

130

Prepaid Insurance

1,800

140

Land

14,000

141

Buildings

61,800

149

Equipment

15,600

201

Accounts Payable

208

Unearned Rent Revenue

275

Mortgage Payable

40,000

301

Owner’s Capital

41,100

429

Rent Revenue

14,600

610

Advertising Expense

726

Salaries and Wages Expense

732

Utilities Expense

$4,800 3,300

550 3,400 950 $103,800

$103,800

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, 2020. 2

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

3

Annual depreciation is $3,708 on the buildings and $1,560 on equipment.

4

The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)

5

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

6

Salaries of $800 are accrued and unpaid at May 31.

Journalize the adjusting entries on May 31. No. Date

Account Titles and Explanation

Debit

Credit

 150 



 150  1,300 



 1,300  439 

 Accumulated Depreciation-Buildings 

 309

 Accumulated Depreciation-Equipment 

130

1 May 31  Insurance Expense  Prepaid Insurance 2 May 31  Supplies Expense  Supplies 3 May 31  Depreciation Expense

4 May 31  Interest Expense





 200  2,200 

 Interest Payable

 200

5 May 31  Unearned Rent Revenue  Rent Revenue

2,200 

6 May 31  Salaries and Wages Expense  Salaries and Wages Payable

 800 



 800

Problem 3-03 Carla Vista Co. was organized on July 1, 2020. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below. CARLA VISTA CO. Trial Balance September 30, 2020 Unadjusted Dr. Cash

$8,800

Cr.

Adjusted Dr. $8,800

Cr.

Accounts Receivable

10,300

11,400

Supplies

1,500

600

Prepaid Rent

2,150

1,200

18,300

18,300

Equipment Accumulated Depreciation—Equipment

$0

$700

Notes Payable

9,000

9,000

Accounts Payable

2,550

2,550

Salaries and Wages Payable

0

730

Interest Payable

0

90

1,950

1,000

21,600

21,600

Unearned Rent Revenue Owner’s Capital Owner’s Drawings

1,550

Service Revenue Rent Revenue

1,550 17,460

18,560

1,460

2,410

Salaries and Wages Expense

8,000

8,730

Rent Expense

1,900

2,850

Depreciation Expense

700

Supplies Expense

900

Utilities Expense

1,520

1,520

Interest Expense

90 $54,020

$54,020

$56,640

$56,640

a. Journalize the adjusting entries that were made. Date

Account Titles and Explanation

Debit

Credit

Sept. 30

 Accounts Receivable

 1,100 

 Service Revenue 

 1,100

 Rent Expense

 950 

 Prepaid Rent 

 950

(To record revenue for services performed) Sept. 30

(To record prepaid rent) Sept. 30

 Supplies Expense

 900 

 Supplies 

 900

 Depreciation Expense

 700 

 Accumulated Depreciation-Equipment 

 700

 Interest Expense

 90 

 Interest Payable 

 90

 Unearned Rent Revenue

 950 

 Rent Revenue 

 950

 Salaries and Wages Expense

 730 

 Salaries and Wages Payable 

 730

(To record supplies used) Sept. 30

(To record monthly depreciation) Sept. 30

(To record interest on notes payable) Sept. 30

(To record rent earned) Sept. 30

(To record accrued salaries and wages)...