Solved by verified expert :The Vang Hotel opened for business on May 1, 2012. Here is its trial balance beforeadjustment on May 31.VANG HOTELTrial BalanceMay 31, 2012Debit CreditCash $ 2,500Prepaid Insurance 1,800Supplies 2,600Land 15,000Buildings 70,000Equipment 16,800Accounts Payable $ 4,700Unearned Rent Revenue 3,300Mortgage Payable 36,000Common Stock 60,000Rent Revenue 9,000Salaries and Wages Expense 3,000Utilities Expense 800Advertising Expense 500$113,000 $113,000Other data:1. Insurance expires at the rate of $450 per month.2. A count of supplies shows $1,050 of unused supplies on May 31.3. Annual depreciation is $3,600 on the building and $3,000 on equipment.4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)5. Unearned rent of $2,500 has been earned.6. Salaries of $900 are accrued and unpaid at May 31.Instructions(a) Journalize the adjusting entries on May 31.(b) Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjustingentries.(c) Prepare an adjusted trial balance on May 31.
