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PROBLEM 3-1A (Continued)
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
31
Balance
Adjusting
J4
250
2,200
2,450
Unearned Service Revenue No. 209
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
31
Balance
Adjusting
J4
1,600
2,000
400
Salaries and Wages Payable No. 212
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
Adjusting
J4
1,080
1,080
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
Balance
20,000
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
31
31
Balance
Adjusting
Adjusting
J4
J4
1,600
1,700
7,500
9,100
10,800
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
Adjusting
J4
900
900
PROBLEM 3-1A (Continued)
Depreciation Expense No. 717
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
Adjusting
J4
190
190
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
Adjusting
J4
150
150
Salaries and Wages Expense 726
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
31
Balance
Adjusting
J4
1,080
3,400
4,480
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
Balance
900
Utilities Expense No. 736
Date
Explanation
Ref.
Debit
Credit
Balance
2015
May 31
Adjusting
J4
250
250
PROBLEM 3-1A (Continued)
(c) NARDELLI CONSULTING
Adjusted Trial Balance
May 31, 2015
Debit
Credit
Cash ....................................................................
Accounts Receivable .........................................
Supplies ..............................................................
Prepaid Insurance ..............................................
Equipment ...........................................................
Accumulated Depreciation—
Equipment .......................................................
Accounts Payable ..............................................
Unearned Service Revenue ...............................
Salaries and Wages Payable .............................
Common Stock ...................................................
Service Revenue .................................................
Supplies Expense ...............................................
Depreciation Expense ........................................
Insurance Expense .............................................
Salaries and Wages Expense ............................
Rent Expense .....................................................
Utilities Expense .................................................
$ 4,500
7,700
1,000
3,450
11,400
900
190
150
4,480
900
250
$34,920
$ 190
2,450
400
1,080
20,000
10,800
$34,920
PROBLEM 3-2A
(a)
J1
Date
Account Titles
Ref.
Debit
Credit
May 31
Insurance Expense ..............................
Prepaid Insurance
($2,400 X 1/12) .........................
722
130
200
200
31
Supplies Expense ................................
Supplies ($2,080 – $750) ............
631
126
1,330
1,330
31
Depreciation Expense
($3,000 X 1/12) + ($1,500 X 1/12) .....
Accumulated Depreciation—
Buildings .................................
619
142
375
250
Accumulated Depreciation—
Equipment ...............................
150
125
31
Interest Expense ..................................
Interest Payable
[($40,000 X 12%) X 1/12] ...........
718
230
400
400
31
Unearned Rent Revenue .....................
Rent Revenue
(2/3 X $3,300) ..........................
208
429
2,200
2,200
31
Salaries and Wages Expense .............
Salaries and Wages Payable .....
726
212
750
750
(b)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Balance
3,500
PROBLEM 3-2A (Continued)
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
31
Balance
Adjusting
J1
1,330
2,080
750
Prepaid Insurance No. 130
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
31
Balance
Adjusting
J1
200
2,400
2,200
Land No. 140
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Balance
12,000
Buildings No. 141
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Balance
60,000
Accumulated Depreciation—Buildings No. 142
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Adjusting
J1
250
250
Equipment No. 149
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Balance
15,000
Accumulated Depreciation—Equipment No. 150
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Adjusting
J1
125
125
PROBLEM 3-2A (Continued)
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Balance
11,180
Unearned Rent Revenue No. 208
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
31
Balance
Adjusting
J1
2,200
3,300
1,100
Salaries and Wages Payable No. 212
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Adjusting
J1
750
750
Interest Payable No. 230
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Adjusting
J1
400
400
Mortgage Payable No. 275
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Balance
40,000
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Balance
35,000
Rent Revenue No. 429
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
31
Balance
Adjusting
J1
2,200
10,300
12,500
PROBLEM 3-2A (Continued)
Advertising Expense No. 610
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Balance
600
Depreciation Expense No. 619
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Adjusting
J1
375
375
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Adjusting
J1
1,330
1,330
Interest Expense No. 718
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Adjusting
J1
400
400
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Adjusting
J1
200
200
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
31
Balance
Adjusting
J1
750
3,300
4,050
Utilities Expense No. 732
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
Balance
900
PROBLEM 3-2A (Continued)
(c) SKYLINE MOTEL
Adjusted Trial Balance
May 31, 2015
Debit
Credit
Cash ....................................................................
Supplies ..............................................................
Prepaid Insurance ..............................................
Land .....................................................................
Buildings .............................................................
Accumulated Depreciation—Buildings .............
Equipment ...........................................................
Accumulated Depreciation—Equipment ...........
Accounts Payable ...............................................
Unearned Rent Revenue ....................................
Salaries and Wages Payable..............................
Interest Payable ..................................................
Mortgage Payable ...............................................
Common Stock ...................................................
Rent Revenue .....................................................
Advertising Expense ..........................................
Depreciation Expense ........................................
Supplies Expense ...............................................
Interest Expense .................................................
Insurance Expense .............................................
Salaries and Wages Expense ............................
Utilities Expense .................................................
$ 3,500
750
2,200
12,000
60,000
15,000
600
375
1,330
400
200
4,050
900
$101,305
$ 250
125
11,180
1,100
750
400
40,000
35,000
12,500
$101,305
PROBLEM 3-2A (Continued)
(d) SKYLINE MOTEL
Income Statement
For the Month Ended May 31, 2015
Revenues
Rent revenue ................................................... $12,500
Expenses
Salaries and wages expense .......................... $4,050
Supplies expense ............................................ 1,330
Utilities expense .............................................. 900
SKYLINE MOTEL
Retained Earnings Statement
For the Month Ended May 31, 2015
Retained Earnings, May 1 ....................................................... $ 0
PROBLEM 3-2A (Continued)
SKYLINE MOTEL
Balance Sheet
May 31, 2015
Assets
Cash .................................................................... $ 3,500
Supplies .............................................................. 750
Prepaid insurance .............................................. 2,200
Land .................................................................... 12,000
Buildings ............................................................ $60,000
Less: Accumulated depreciation—
Liabilities and Stockholders’ Equity
Liabilities
Accounts payable ....................................... $ 11,180
Unearned rent revenue .............................. 1,100
Salaries and wages payable ...................... 750
