he following are events or transactions for Sunshine Hotel completed in May 2022: May 1 Issued shares for $400,000 cash. 8 Purchased a building at $900,000. The company paid $250,000 and financed the remainder with a bank loan. 11 Paid $6,000 for a 6-month insurance policy on the building. 15 Purchased supplies costing $4,000 on account. 18 Received advance payments of $12,000 from customers that will be staying in the hotel next month. 20 Paid the staff $15,000 for semi-monthly payroll. 25 Paid for the supplies purchased on 15 May. 26 Paid $500 for repair and maintenan
The following are events or transactions for Sunshine Hotel completed in May 2022:
May 1 Issued shares for $400,000 cash.
8 Purchased a building at $900,000. The company paid $250,000 and financed
the remainder with a bank loan.
11 Paid $6,000 for a 6-month insurance policy on the building.
15 Purchased supplies costing $4,000 on
18 Received
in the hotel next month.
20 Paid the staff $15,000 for semi-monthly payroll.
25 Paid for the supplies purchased on 15 May.
26 Paid $500 for repair and maintenance expense.
30 Received cash $13,000 from customer currently staying at the hotel.
31 Paid dividend $4,000 to shareholders.
Required:
Prepare general
Part B
Bayside Products Ltd manufactures electrical products. The accountant is now preparing the
year-end adjustments for the financial statements for the year ended 31 December 2021:
(a) The Prepaid Insurance account shows a debit balance of $2,340, representing the cost of
a three-year fire insurance policy that was purchased on 1 October 2021.
(b) The Office Supplies account has a debit balance of $400; a year-end inventory count
reveals $80 of supplies still on hand.
(c) On 1 November 2021, Rent Earned was credited for $1,500. This amount represented
the rent earned for a three-month period beginning 1 November 2021.
(d) Estimated
(e) Salaries for December 2021 still unpaid at 31 December 2021 amount to $400.
Required:
Prepare
Explanations are NOT required.
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