In addition to those accounts listed on the trial balance, the chart of accounts for Blossom Company also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data:
1. Prepaid insurance is a 1-year policy starting May 1, 2020.
2. A count of supplies shows $800 of unused supplies on May 31.
3. Annual depreciation is $3,024 on the buildings and $1,548 on equipment.
4. The mortgage interest rate is12%.(The mortgage was taken out on May1)
5. Two-thirds of the unearned rent revenue has been earned.
6. Salaries of $700 are accrued and unpaid at May 31.

Journalize the adjusting entries on May 31.

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abdulmajeedabiodunac abdulmajeedabiodunac · Answer 1 · 2020-02-14T09:16:03+01:00

Answer:

The question is missing the trial balance below:

The Skyline Motel opened for business on May 1, 2015. Its trial balance before adjustment on May 31 is as follows.

SKYLINE MOTEL

Trial Balance

May 31, 2015

Account Number Debit Credit

101 Cash $ 3,482

126 Supplies 2,146

130 Prepaid Insurance 2,184

140 Land 13,720

141 Buildings 59,040

149 Equipment 15,240

201 Accounts Payable $ 11,256

208 Unearned Rent Revenue 3,300

275 Mortgage Payable 40,000

301 Common Stock 35,606

429 Rent Revenue 10,476

610 Advertising Expense 630

726 Salaries and Wages Expense 3,307

732 Utilities Expense 889

$100,638 $100,638

Kindly find attached journals in of the company.

Explanation:

The note that interest on mortgage is only 1 month,hence I divided annual mortgage interest by 12.