The Blossom Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31.

Debit Credit
Cash $2,513
Supplies 2,600
Prepaid Insurance 1,800
Land 15,013
Buildings 67,600
Equipment 16,800
Accounts Payable $4,713
Unearned Rent Revenue 3,300
Mortgage Payable 33,600
Common Stock 60,013
Rent Revenue 9,000
Salaries and Wages Expense 3,000
Utilities Expense 800
Advertising Expense 500
$110,626 $110,626

1. Insurance expires at the rate of $450 per month.
2. A count of supplies shows $1,070 of unused supplies on May 31.
3. a. Annual depreciation is $2,760 on the building.
b. Annual depreciation is $2,160 on equipment.
4. The mortgage interest rate is 5%. (The mortgage was taken out on May 1.)
5. Unearned rent of $2,620 has been earned.
6. Salaries of $720 are accrued and unpaid at May 31.

a. Journalize the adjusting entries on May 31.
b. Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries.
c. Prepare an adjusted trial balance on May 31.
d. Prepare an income statement for the month of May.
e. Prepare a retained earnings statement for the month of May.
f. Prepare a classified balance sheet at May 31.
g. Identify which accounts should be closed on May 31.

A)

Dr insurance expense 450

    Cr Prepaid insurance 450

Dr Supplies expense 1,530

    Cr Supplies 1,530

Dr Depreciation expense 410

    Cr Accumulated depreciation - building 230

    Cr Accumulated depreciation - equipment 180    

Dr Interest expense 140

    Cr Interest payable - mortgage 140

Dr Unearned rent revenue 2,620

    Cr Rent revenue 2,620

Dr Wage expense 720

    Cr Wages payable 720

B)

Prepaid insurance - Assets

Dr                             Cr

5/1 $1,800                5/31 $450 expired insurance

Supplies - Assets

Dr                             Cr

5/1 $2,600                5/31 $1,530 used supplies

Building - Assets

Dr                             Cr

5/1 $67,600                5/31 $230 accumulated depreciation

Land - Assets

Dr                             Cr

5/1 $15,013

Cash - Assets

Dr                             Cr

5/1 $2,513            

Equipment - Assets

Dr                             Cr

5/1 $16,800                5/31 $180 accumulated depreciation

Mortgage - Liabilities

Dr                             Cr

                                5/1 $33,600

                                5/31 $140 interest payable

Unearned rent revenue - Liabilities

Dr                             Cr

5/31 $2,600             5/1 $3,300

Wages payable - Liabilities

Dr                             Cr

                                5/31 $720

Accounts payable - Liabilities

Dr                             Cr

                                5/31 $4,713

Common stock - Equity

Dr                             Cr

                                5/31 $60,013

Rent revenue - Revenue

Dr                             Cr

                                5/31 $9,000

                                5/31 $2,620

Salaries and wage expense - Expenses

Dr                             Cr

5/31 $3,000

5/31 $720

Utilities expense - Expenses

Dr                             Cr

5/31 $800

Advertising expense - Expenses

Dr                             Cr

5/31 $500

C) adjusted trial balance

Assets

Current assets:

Cash $2,513

Supplies $1,070

Prepaid insurance $1,350

Non-current assets:

Land $15,013

Buildings $67,370

Equipment $16,620

total ASSETS = $103,936

Liabilities

Current liabilities:

Interest payable $140

Unearned rent revenue $680

Wages payable $720

Accounts payable $4,713

Long term liabilities:

Mortgage $33,600

total LIABILITIES = $39,853

Equity

Common stock $60,013

Retained earnings $4,070

total EQUITY = $64,083

ASSETS = LIABILITIES + EQUITY

$103,936 = $39,853 + $64,083

D) income statement

total revenue = $9,000 + $2,620 = $11,620

- wages expense = $3,000 + $720 = ($3,720)

- insurance expense = ($450)

- supplies expense = ($1,530)

- depreciation expense = ($410)

- interest expense = ($140)

- Utilities expense = ($800)

- Advertising expense = ($500)                              

net income $4,070

E) retained earnings statement

Retained earnings May 1                     $0

Net income May 31                       $4,070

total                                                $4,070

F) classified trial balance

Assets

Current assets $4,933

Non-current assets $99,003

total ASSETS = $103,936

Liabilities

Current liabilities $6,253

Long term liabilities $33,600

total LIABILITIES = $39,853

Equity

Common stock $60,013

Retained earnings $4,070

total EQUITY = $64,083

ASSETS = LIABILITIES + EQUITY

$103,936 = $39,853 + $64,083

G) the accounts that must be closed against the income summary account are all the revenue and expense accounts used to calculate the income statement. The income summary account is then closed to retained earnings.

answer; enforce the rules;

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'