The Blossom Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. BLOSSOM HOTELTrial BalanceMay 31, 2022     Debit   Credit Cash   $ 2,513         Supplies   2,600         Prepaid Insurance   1,800         Land   15,013         Buildings   67,600         Equipment   16,800         Accounts Payable         $ 4,713   Unearned Rent Revenue         3,300   Mortgage Payable         33,600   Common Stock         60,013   Rent Revenue         9,000   Salaries and Wages Expense   3,000         Utilities Expense   800         Advertising Expense   500             $110,626     $110,626   Other data: 1.   Insurance expires at the rate of $450 per month. 2.   A count of supplies shows $1,070 of unused supplies on May 31. 3.   (a) Annual depreciation is $2,760 on the building.     (b) Annual depreciation is $2,160 on equipment. 4.   The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) 5.   Unearned rent of $2,620 has been earned. 6.   Salaries of $720 are accrued and unpaid at May 31. A) Journalize the adjusting entries on May 31.  B) Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. C) Prepare an adjusted trial balance on May 31. D) Prepare an income statement for the month of May. E) Prepare a retained earnings statement for the month of May. F) Prepare a classified balance sheet at May 31.  G) Identify which accounts should be closed on May 31.

Question

The Blossom Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.

BLOSSOM HOTEL
Trial Balance
May 31, 2022
   
Debit
 
Credit
Cash
  $ 2,513        
Supplies
  2,600        
Prepaid Insurance
  1,800        
Land
  15,013        
Buildings
  67,600        
Equipment
  16,800        
Accounts Payable
        $ 4,713  
Unearned Rent Revenue
        3,300  
Mortgage Payable
        33,600  
Common Stock
        60,013  
Rent Revenue
        9,000  
Salaries and Wages Expense
  3,000        
Utilities Expense
  800        
Advertising Expense
 
500
   
 
 
   
$110,626
   
$110,626
 


Other data:

1.   Insurance expires at the rate of $450 per month.
2.   A count of supplies shows $1,070 of unused supplies on May 31.
3.   (a) Annual depreciation is $2,760 on the building.
    (b) Annual depreciation is $2,160 on equipment.
4.   The mortgage interest rate is 5%. (The mortgage was taken out on May 1.)
5.   Unearned rent of $2,620 has been earned.
6.   Salaries of $720 are accrued and unpaid at May 31.

A) Journalize the adjusting entries on May 31. 

B) Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries.

C) Prepare an adjusted trial balance on May 31.

D) Prepare an income statement for the month of May.

E) Prepare a retained earnings statement for the month of May.

F) Prepare a classified balance sheet at May 31. 

G) Identify which accounts should be closed on May 31.

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