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The Olathe Hotel opened for business on May 1, 2010

Price: $4.99

The Olathe Hotel opened for business on May 1, 2010. Here is its trial balance
before adjustment on May 31.

Trial Balance
May 31, 2010

Debit Credit
Cash $ 2,500
Prepaid Insurance 1,800
Supplies 2,600
Land 15,000
Lodge 70,000
Furniture 16,800
Accounts Payable $ 4,700
Unearned Rent Revenue 3,300
Mortgage Payable 36,000
Common Stock 60,000
Rent Revenue 9,000
Salaries Expense 3,000
Utilities Expense 800
Advertising Expense 500
$113,000 $113,000

Other data:

so on ...


(a) Journalize the adjusting entries on May 31.

(b) Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting

(c) Prepare an adjusted trial balance on May 31.

(d) Prepare an income statement and a retained earnings statement for the month of
May and a classified balance sheet at May 31.

(e) Identify which accounts should be closed on May 31.

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