(a) Date 2014 May 31 Insurance Expense Prepaid Insurance (to record insurance expired: $2400 / 12 = $200 per

month) May 31 Supplies Expense Supplies (to record supplies used) May 31 Depreciation Expense (Buildings) Accumulated Depreciation - Buildings (to record monthly depreciation) May 31 Depreciation Expense (Equipment) Accumulated Depreciation - Equipment (to record monthly depreciation) May 31 Interest Expense Interest Payable (to record accrued interest: $38000 * 12% / 12 = $380) May 31 Unearned Rent Revenue Rent Revenue (to record revenue for services performed: 2/3 * $3300 = $2200) May 31 Salaries and Wages Expense Salaries and Wages Payable (to record accrued salaries) General Journal Account Titles and Explanation Ref. Debit 722 130 200

J1 Credit

200

631 126 711 142 711 158 718 230

1170 1170 220 220 125 125 380 380

208 429

2200 2200

726 212

750 750

5045 (c) Badger Motel, Inc. Adjusted Trial Balance May 31, 2014 Account Number Cash Supplies Prepaid Insurance Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Interest Payable Dr. 2500 350 2200 14000 58000 0 15000 0 0 0 0 0 Cr. 0 0 0 0 0 220 0 125 4800 1100 750 380

Mortgage Payable Share Capital-Ordinary No. 311 Rent Revenue No. 429 Advertising Expense No. 610 Supplies Expense No. 631 Depreciation Expense No. 711 Interest Expense No. 718 Insurance Expense No. 722 Salaries and Wages Expense No. 726 Utilities Expense No. 732

0 0 0 780 1170 345 380 200 4050 900 99875

38000 40000 14500 0 0 0 0 0 0 0 99875

(d) Badger Motel, Inc. Income Statement For the Month Ended May 31, 2014 Revenues Rent Revenue Expenses Advertising Expense No. 610 Supplies Expense No. 631 Depreciation Expense No. 711 Interest Expense No. 718 Insurance Expense No. 722 Salaries and Wages Expense Utilities Expense Total Expense Net Income Badger Motel, Inc. Retained Earnings Statement For the Month Ended May 31, 2014 Retained earnings, May 1 Add: Net income Less: Dividends 0 6675 6675 0 6675 14500

Badge Statement o For the Month

780 1170 345 380 200 4050 900 7825 6675

Buildings Less: Accumulated Depr Equipment Less: Accumulated Depr Cash Supplies Prepaid Insurance Land Total Assets

Equity

Equity Share capital-ordinary Retained earnings Liabilities Accounts Payable Unearned Rent Revenu Salaries and Wages Pa Interest Payable Mortage Payable

(b) Cash No.101 Date Explanation May 31 Balance Supplies No. 126 Date Explanation May 31 Balance May 31 Adjusting

Ref. v

Debit

Credit Balance 2500

Accounts Payable No. 201 Date Explanation Ref. Debit May 31 Balance v Unearned Rent Revenue No. 208 Date Explanation Ref. Debit May 31 Balance v May 31 Adjusting J1 2200 Salaries and Wages Payable No. 212 Date Explanation Ref. Debit May 31 Adjusting J1 Interest Payable No. 230 Date Explanation Ref. Debit May 31 Adjusting J1 Mortgage Payable No. 275 Date Explanation Ref. Debit May 31 Balance v Share Capital-Ordinary No. 311 Date Explanation Ref. Debit May 31 Balance v Rent Revenue No. 429 Date Explanation May 31 Balance May 31 Adjusting

Ref. v J1

Debit

Credit Balance 1520 1170 350

Prepaid Insurance No. 130 Date Explanation Ref. May 31 Balance v May 31 Adjusting J1 Land No. 140 Date Explanation May 31 Balance Buildings No. 141 Date Explanation May 31 Balance

Debit

Credit Balance 2400 200 2200

Ref. v

Debit

Credit Balance 14000

Ref. v

Debit

Credit Balance 58000

Accumulated Depreciation-Buildings No. 142 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 220 220 Equipment No. 157 Date Explanation May 31 Balance

Ref. v

Debit

Credit Balance 15000

Ref. Debit v J1

Accumulated Depreciation-Equipment No. 158 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 125 125

Badger Motel, Inc. Statement of Financial Position For the Month Ended May 31, 2014 Assets 58000 Less: Accumulated Depreciation-Buildings220 15000 Less: Accumulated Depreciation-Equipment 125

57780 14875 2500 350 2200 14000 91705

Prepaid Insurance Total Assets Equity and Liabilities Share capital-ordinary Retained earnings Accounts Payable Unearned Rent Revenue Salaries and Wages Payable Interest Payable Mortage Payable 40000 6675 4800 1100 750 380 38000

46675

45030 91705

Credit Balance 4800

Advertising Expense No. 610 Date Explanation Ref. Debit Credit Balance May 31 Balance v 780 Supplies Expense No. 631 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 1170 1170 Depreciation Expense No. 711 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 220 220 May 31 Adjusting J1 125 345 Interest Expense No. 718 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 380 380 Insurance Expense No. 722 Date Explanation Ref. Debit Credit Balance May 31 Adjusting J1 200 200 Salaries and Wages Expense No. 726 Date Explanation Ref. Debit Credit Balance May 31 Balance v 3300 May 31 Adjusting J1 750 4050 Utilities Expense No. 732 Date Explanation Ref. Debit Credit Balance May 31 Balance v 900

Credit Balance 3300 1100

Credit Balance 750 750

Credit Balance 380 380

Credit Balance 38000

Credit Balance 40000

Credit Balance 12300 2200 14500