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    Accounting - I Assignment No-4: Instructions

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    Ahsan Raza
    Badger Motel opened on May 1, 2017 and provided its trial balance on May 31. Adjusting entries are needed for depreciation, prepaid insurance, supplies, unearned rent revenue, accrued salaries, and interest payable. An adjusted trial balance will be prepared along with income statement, retained earnings statement, and statement of financial position for May 31.

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    Accounting - I Assignment No-4: Instructions

    Uploaded by

    Ahsan Raza
    534 views1 page
    Badger Motel opened on May 1, 2017 and provided its trial balance on May 31. Adjusting entries are needed for depreciation, prepaid insurance, supplies, unearned rent revenue, accrued salaries, and interest payable. An adjusted trial balance will be prepared along with income statement, retained earnings statement, and statement of financial position for May 31.

    Original Title

    Assignment No-4 (3)

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    Badger Motel opened on May 1, 2017 and provided its trial balance on May 31. Adjusting entries are needed for depreciation, prepaid insurance, supplies, unearned rent revenue, accrued salaries, and interest payable. An adjusted trial balance will be prepared along with income statement, retained earnings statement, and statement of financial position for May 31.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    534 views1 page

    Accounting - I Assignment No-4: Instructions

    Uploaded by

    Ahsan Raza
    Badger Motel opened on May 1, 2017 and provided its trial balance on May 31. Adjusting entries are needed for depreciation, prepaid insurance, supplies, unearned rent revenue, accrued salaries, and interest payable. An adjusted trial balance will be prepared along with income statement, retained earnings statement, and statement of financial position for May 31.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Accounting -I Assignment No- 4

    P3-2B
    Badger Motel, Ltd. opened for business on May 1, 2017. Its trial balance before adjustment on
    May 31 is as follows.

    BADGER MOTEL, LTD.


    Trial Balance
    May 31, 2017
    Account Number Debit Credit
    101 Cash £ 2,500
    126 Supplies 1,520
    130 Prepaid Insurance 2,400
    140 Land 14,000
    141 Buildings 58,000
    157 Equipment 15,000
    201 Accounts Payable £ 4,800
    208 Unearned Rent Revenue 3,300
    275 Mortgage Payable 38,000
    311 Share Capital—Ordinary 40,000
    429 Rent Revenue 12,300
    610 Advertising Expense 780
    726 Salaries and Wages Expense 3,300
    732 Utilities Expense 900
    Total £98,400 £98,400

    In addition to those accounts listed on the trial balance, the chart of accounts for Badger Motel,
    Ltd. also contains the following accounts and account numbers: No. 142 Accumulated
    Depreciation—Buildings, No. 158 Accumulated Depreciation—Equipment, No. 212 Salaries and
    Wages Payable, No. 230 Interest Payable, No. 631 Supplies Expense, No. 711 Depreciation
    Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

    Other data:
    1. Prepaid insurance is a 1-year policy starting May 1, 2014.
    2. A count of supplies shows £350 of unused supplies on May 31.
    3. Annual depreciation is £2,640 on the buildings and £1,500 on equipment.
    4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.)
    5. Two-thirds of the unearned rent revenue should be recognized as rent revenue prior to May 31.
    6. Salaries of £750 are accrued and unpaid at May 31.

    Instructions
    (a) Journalize the adjusting entries on May 31.
    (b) Prepare an adjusted trial balance on May 31.
    (c) Prepare an income statement and a retained earnings statement for the month of May
    (d) and a statement of financial position at May 31.

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