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Problem
Mac's Motel opened for business on May 1, 2019. Its trial balance before adjustment on May 31 is as follows. MAC'S MOTEL Trial Balance May 31, 2019 In addition to those accounts listed on the trial balance, the chart of accounts for Mac's Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, 150 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable,No. 230 Interest Payable, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense. Other data Prepaid insurance is a 1-year policy starting May 1, 2019. A count of supplies shows $750 of unused supplies on May 31. Annual depreciation is $3,000 on the buildings and $1,500 on equipment. Get the instant assignment help. The mortgage interest rate is 12%. (The mortgage was taken ot on May 1 and will be repaid along with interest in 2 years.) Two-thirds of the unearned rent revenue has been earned. Salaries of $750 are accrued and unpaid at May 31. Prepare the adjusting entries on May 31. Prepare an adjusted trial balance at May 31, 2019.
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