ACC 290 - Week 3: P 4-3A Quiz. Questions and Answers.

ACC 290 - Week 3: P 4-3A Quiz. Questions and Answers. Problem 4-3A The Solo Hotel opened for business on May 1, 2014. Here is its trial balance before adjustment on May 31. SOLO HOTEL Trial Balance May 31, 2014 Debit Credit Cash $ 2,718 Supplies 2,600 Prepaid Insurance 1,800 Land 15,218 Buildings 74,800 Equipment 16,800 Accounts Payable $ 4,918 Unearned Rent Revenue 3,300 Mortgage Payable 40,800 Common Stock 60,218 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 $118,236 $118,236 Other data: 1. Insurance expires at the rate of $360 per month. 2. A count of supplies shows $1,157 of unused supplies on May 31. 3. (a) Annual depreciation is $3,840 on the building. (b) Annual depreciation is $3,720 on equipment. 4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,522 has been earned. 6. Salaries of $805 are accrued and unpaid at May 31. Your answer is correct. Journalize the adjusting entries on May 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. Insurance Exp 360 Prepaid Insura 360 Supplies Expe 1,443 3 (a). 3 (b). 4. 5. 6.