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P4-3A The Palpatine Hotel opened for business on May 1, 2001. Here is its tria ance before adjustment on May 31: PALPATINE HOTEL Trial Balance May 31, 2001 . Credit Debit $ 2.500 1.800 1,900 15.000 70.000 16.800 $ Cash Prepaid Insurance Supplies Land Lodge Fumiture Accounts Payable Uneamed Rent Revenue Mortgage Payable Common Stock Rent Revenue Salaries Expense Utilities Expense Advertising Expense 4,700 3.600 35.000 60,000 9.200 3.000 1,000 500 $112.500 $112.500 Other data: 1. Insurance expires at the rate of $200 per month. 2. An inventory of supplies shows $1,200 of unused supplies on May 31. 3. Annual depreciation is $3.600 on the lodge and $3.000 on furniture. 4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.) 5. Uneamed rent of $1.500 has been earned. 6. Salaries of $300 are accrued and unpaid at May 31. Instructions (a) Joumalize the adjusting entries on May 31. (b) Prepare a ledger using T accounts. Enter the trial balance amounts and pose justing entries. (c) Prepare an adjusted trial balance on May 31. (d) Prepare an income statement and a retained earnings statement for the May and a balance sheet at May 31 (e) Identify which accounts should be closed on May 31

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