3. 9. 1. An annual insurance policy was purchased for the first time on October 1, 2020, for $10,080 cash. A count of supplies shows $1,471 of supplies on hand on May 31. 2. 3. The buildings have an estimated useful life of 20 years and straight-line depreciation is applied. 4. The furniture has an estimated useful life of five years and straight-line depreciation is applied. 5. Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An analysis of these bookings indicates that 175 deposits were received and credited to Deferred Revenue. By May 31,25 of the deposits were earned. 6. On May 25, a local business contracted with Carla Vista Lodge to rent one of its housekeeping units for four months, starting June 1, at a rate of $3,079 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Income. 7. On May 31, Carla Vista Lodge has earned $1,800 of rent income from customers who are currently staying at the lodge. The customers will pay the amount owing only when they check out in early June. Salaries of $1,562 are unpaid at May 31. Interest on the mortgage payable is $735 for the month of May and due June 1. The May utility bill of $2,021 has not yet been recorded or paid. 10.
3. 9. 1. An annual insurance policy was purchased for the first time on October 1, 2020, for $10,080 cash. A count of supplies shows $1,471 of supplies on hand on May 31. 2. 3. The buildings have an estimated useful life of 20 years and straight-line depreciation is applied. 4. The furniture has an estimated useful life of five years and straight-line depreciation is applied. 5. Customers must pay a $100 deposit if they want to book a room in advance during the peak period. An analysis of these bookings indicates that 175 deposits were received and credited to Deferred Revenue. By May 31,25 of the deposits were earned. 6. On May 25, a local business contracted with Carla Vista Lodge to rent one of its housekeeping units for four months, starting June 1, at a rate of $3,079 per month. An advance payment equal to one month's rent was paid on May 25 and credited to Rent Income. 7. On May 31, Carla Vista Lodge has earned $1,800 of rent income from customers who are currently staying at the lodge. The customers will pay the amount owing only when they check out in early June. Salaries of $1,562 are unpaid at May 31. Interest on the mortgage payable is $735 for the month of May and due June 1. The May utility bill of $2,021 has not yet been recorded or paid. 10.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 9P: During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the...
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