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The Ivanhoe Hotel opened for business on May 1, 2022. The May transactions resulted in a tabular summary, with May 31 unadjusted balances shown below in the first row. The $20,700 in the revenue column resulted from Rent Revenue. The $9,890 in the expense column includes salaries and Wages $6,900, Utilities $1,840, and Advertising $1,150. Assets Acc. Depr.- Bldgs. + Prepd. Insur. Acc. Depr. Equip. = Cash + Supplies + Land + Accts. Pay. Bldgs. Int. + Pay + + Equip. Bal. 5,750 + 5.980+ 4,140 + 34,500 + 161,000 0 + 38,640 0 10,810 + + (a) Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity Item that was reduced.) (a) Record adjustments on May 31 that reflect the following data. Include explanations for each adjustment to revenue or expense. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign for parentheses) in front of the amount entered for the particular Asset, Liability or Equity Item that was reduced.) 1 1. 2. 3. Insurance expires at the rate of $1,035 per month. A count of supplies shows $2,415 of unused supplies on May 31. (a) Annual depreciation is $8,280 on the building, (b) Annual depreciation is $6,900 on equipment. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.) Rental services related to unearned rent of $5,750 have been provided. Salaries of $2,070 are accrued and unpaid at May 31. 4. 5. 6. Prepd. Insur. Cash Supplies Bal. 5,750 5,980 4,140 Adj. 1. Adj. 2. Adj. 3a. Adj. 3b. Adj. 4. Adj.5. Adj. 6. Adj. Bal. Acc. Depr.- Bldgs. Land Bldgs. 34,500 161,000 0 I Acc. Depr.- Equip. Accts. Pay. Equip. 38,640 0 10,810 Sal./Wages Pay Unearn. Rent. Rev. Int. Pay 0 0 7,590 I Stockholders' Equity Retained Earnings Mortg. Pay Com Stock Rev. Exp. 82,800 138,000 20,700 -9,890 Div 0

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