Chapter 3 - Analyze

Hank’s Hotel opened adjusted data.

for business on May 1, 2022. Its trial
balance before adjustment on May 31 is as follows

Hank's Hotel
Trial Balance
31-May-22

Account number
101 Cash
126 Supplies
130 Prepaid Insurance
140 Land
141 Buildings
149 Equipment
200 Notes Payable
201 Accounts Payable
208 Unearned Rent Revenue
301 Owner’s Capital
429 Rent Revenue
610 Advertising Expense
726 Salaries and Wages Expense
732 Utilities Expense

In addition to those accounts listed on the trial balance, the chart of accounts for Hank’s Hotel also contain
numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment
No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Exp

Other data:
(1) Prepaid insurance is a 1­year policy starting May 1, 2022.
(2) Account of supplies shows $750 of unused supplies on May 31
(3) Annual
The depreciation
note is $3,600
payable interest rate on the buildings
is 6%. (The noteand
was$1,500 on equipment.
taken out on May 1 and will be repaid along
(4) interest in 1 year.)
(5) Two­thirds of the unearned rent revenue has been earned.
(6) Salaries and wages of $750 are unpaid and unrecorded at May 31.

Instructions:
(a) Journalize
Prepare the adjusting
a ledger entries
using the on
three­ May 31.
column form of account. Enter the trial balance amounts and pos
(b) the adjusting entries.
(Use J1 as the posting reference.)
(c) Prepare an adjusted trial balance on May 31.
(d) Prepare an income statement and an owner’s equity statement for the month of May and a balan
 GENERAL JOURNAL
Date Account Titles and Explanation
1-May Insurance Expense
Prepaid Expense
(To recoed insurance expired)

31-May Supplies Expense

Supplies
(To record supplies used)

31-May Depreciation expense

Accumulated depreciation - Equipments
Accumulated depreciation - Buildings
(To record montly depreciation)

31-May Interest Expense

Interest Payable
(To record on interest on notes payable)

31-May Unearned Rent Revenue

Rent Revenue
(To record revenue for rent)

31-May Salaries and Wage Expenses

Salaries and Wage Payable
(To record salaries and wages)

Post the journal entries to general ledger accounts.

Cash
Date Explanation

31-May

Supplies
Date Explanation

31-May

Prepaid Insurance
Date Explanation

31-May

Land
Date Explanation

31-May

Buildings
Date Explanation

31-May

Accumulated depreciation - Building

Date Explanation

31-May

Equipment
Date Explanation

31-May

Accumulated depreciation - Equipmen

Date Explanation

31-May

Note Payable
Date Explanation

31-May

Account Payable
Date Explanation

31-May

Unearned rent revenue

Date Explanation
31-May

Owner's Capital
Date Explanation

31-May

Rent revenue
Date Explanation

31-May

Advertising Expense
Date Explanation

31-May

Salaries and Wages Expense

Date Explanation

31-May

Utilities Expense
Date Explanation

31-May

Insurance Expense
Date Explanation

31-May

Supplies Expense
Date Explanation

31-May

Depreciation expense
Date Explanation

31-May

Interest Expense
Date Explanation
31-May

Interest Payable
Date Explanation

31-May

Salaries and Wage Payable

Date Explanation

31-May

Hank's hotel
Adjusted Trial Balance 31/05/22
AccountAccounts title Debit Credit
101 Cash $3,400
126 Supplies $750
130 Prepaid Insurance $2,200
140 Land $12,000
141 Buildings $60,000
149 Equipment $15,000
142 Accumulated depreciation - Buildings $300
150 Accumulated depreciation - Equipments $125
201 Accounts payable $4,700
208 Unearned Rent Revenue $1,100
212 Salaries and Wages Payable $750
718 Interest Payable $200
301 Owner's Capital $41,380
610 Advertising Expense $600
429 Rent Revenue $12,500
718 Interest Expense $200
722 Insurance Expense $200
732 Utility Expense $900
631 Supplies Expense $1,330
619 Depreciation Expense $425
726 Salaries and Wages Expense $4,050
200 Note Payable $40,000
$101,055 $101,055
TRUE
 Hank's Hotel
Balanced Sheet
31-May-22
Revenues
Rent Revenues $12,500

Expenses
Advertising Expense $600
Depreciation Expenses $425
Supplies Expenses $1,330
Interest Expenses $200
Insurance Expenses $200
Salaries and Wages Expense $4,050
Utilities Expense $900
$7,705
Net Income $4,795

Hank's Hotel
Balanced Sheet
31-May-22

ASSETS
Cash
Supllies
Prepaid insurance
Land
Buildings
(Depreciations Buildings)
Equipment
(Depreciations Equipment)

Total Assets

Liabilities and owner Equity

Notes Payable
Accounts Payable
Unearned Rent Revenue
Salaries and Wages Payable
Interest Payable

Owner Equity
Owner’s Capital
Net income
Total Liabilities and Equity
 Debit Credit
$3,400
$2,080
$2,400
$12,000
$60,000
$15,000
$40,000
$4,700
$3,300
$41,380
$10,300
$600
$3,300
$900
$99,680 $99,680

’s Hotel also contains the following accounts and account

eciation—Equipment, No. 212 Salaries and Wages Payable,
No. 718 Interest Expense, and No. 722 Insurance Expense

will be repaid along with

nce amounts and post

h of May and a balance sheet at May 31

 J1
Ref Debit Credit
722 $200
130 $200
xpired)

631 $1,330
126 $1,330
used)

619 $425
149 $125
141 $300
eciation)

718 $200
230 $200
tes payable)

208 $2,200
429 $2,200
r rent)

726 $750
212 $750
wages)

Cash
Ref. Debit Credit Balance

101 $3,400 $3,400

pplies
Ref. Debit Credit Balance

126 $2,080 $2,080

$1,330 $750

Insurance
 Ref. Debit Credit Balance

130 $2,400 $2,400

$200 $2,200

and
Ref. Debit Credit Balance

140 $12,000 $12,000

ldings
Ref. Debit Credit Balance

141 $60,000 $60,000

reciation - Buildings
Ref. Debit Credit Balance

$300 $300

ipment
Ref. Debit Credit Balance

149 $15,000 $15,000

eciation - Equipments
Ref. Debit Credit Balance

$125 $125

Payable
Ref. Debit Credit Balance

200 $40,000 $40,000

nt Payable
Ref. Debit Credit Balance

201 $4,700 $4,700

rent revenue
Ref. Debit Credit Balance

208 $2,200 $2,200

 $3,300 $1,100

's Capital
Ref. Debit Credit Balance

301 $41,380 $41,380

revenue
Ref. Debit Credit Balance

429 $10,300
$2,200 $12,500
ng Expense
Ref. Debit Credit Balance

610 $600 $600

Wages Expense
Ref. Debit Credit Balance

726 $3,300 $3,300

$750 $4,050
s Expense
Ref. Debit Credit Balance

732 $900 $900

ce Expense
Ref. Debit Credit Balance

722 $200 $200

s Expense
Ref. Debit Credit Balance

631 $1,330 $1,330

ion expense
Ref. Debit Credit Balance

619 $425 $425

t Expense
Ref. Debit Credit Balance
 718 $200 $200

st Payable
Ref. Debit Credit Balance

230 $200 $200

d Wage Payable
Ref. Debit Credit Balance

212 $750 $750

 Hank's Hotel
Owner Equity
31-May-22
Owner Capital $41,380
Net Income $4,795
Owner Equity $46,175

Amount Amount
$3,400
$750
$2,200
$12,000
$60,000
$300 $59,700
$15,000
$125 $14,875

$92,925

$40,000
$4,700
$1,100
$750
$200

$41,380
$4,795
$92,925
 Group 3
Student's name Student ID number
Nguyễn Nam Khánh 23006258
Nguyễn Đăng Triệu 23005121
Lâm Bảo Châu 23006053
Nguyễn Ngọc Kim Uyên 23005148
Lương Anh Quân 23005767
Ngô Cẩm Tú 23006379