Question

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Arrow Hospitality prepares adjustments monthly and showed the following at September 30, 2023:
ARROW HOSPITALITY
Trial Balances
September 30, 2023
Unadjusted
Account
Cash
Accounts receivable
Repair supplies
Prepaid rent
office furniture
Accounts payable
Notes payable
Eli Arrow, capital
Eli Arrow, withdrawals
Hospitality revenues
Salaries expense
Wages expense
Totals
Trial Balance
Dr.
$ 6,500
11,700
2,450
14,500
28,900
Cr.
$ 8,500
23,600
68,408
133,000
5,500
146,500
17,458
$ 233,508 $ 233,508
Adjustments
Dr. Cr.
Adjusted
Trial Balance
Dr.
Additional information available for the month ended September 30, 2023:
a. Interest of $177 had accrued on the notes payable for the month of September.
b. The office furniture was acquired on September 1, 2023, and has an estimated four-year life. The furniture will be sold for about
$2,500 at the end of its four-year life.
c. A count of the Repair Supplies revealed a balance on hand of $750.
d. A review of the Prepaid Rent account showed that $12,000 had been used during September.
e. Accrued wages of $3,050 had not been recorded at month-end.
f. The September Internet bill for $120 had been received and must be paid by October 14.
g. Accrued revenues of $6,700 were not recorded at September 30.
Required:
1. Complete the adjusted trial balance by including the adjusting entries.
2. Prepare an income statement based on adjusted trail balance completed in 1
3.

Answer 1

1. Adjusted Trial Balance:

ARROW HOSPITALITY
Adjusted Trial Balance
September 30, 2023
Account
Cash
Accounts receivable
Repair supplies
Prepaid rent
Office furniture
Accounts payable
Notes payable
Eli Arrow, capital
Eli Arrow, withdrawals
Hospitality revenues
Salaries expense
Wages expense
Interest expense
Internet expense
Totals
Trial Balance
Dr.
$ 6,500
11,700
2,450
14,500
28,900
Cr.
$ 8,500
23,600
68,408
133,000
5,500
146,500
17,458
$ 233,508 $ 233,508
Adjustments
Dr.
177
750
12,000
3,050
120
6,700
Cr.
$ 177
$ 750
$ 12,000
$ 3,050
$ 120
$ 6,700

Adjusted Trial Balance
Dr.
$ 6,677
12,450
3,200
2,500
28,900
Cr.
$ 8,500
24,300
68,408
133,000
5,500
146,500
17,458
$ 233,508 $ 233,508

2. Income Statement:

ARROW HOSPITALITY
Income Statement
For the Month Ended September 30, 2023
Hospitality revenues
Salaries expense
Wages expense
Interest expense
Internet expense
Total expenses
Net income
$ 153,108
14,200
3,050
177
120
17,547
$ 135,561

3. The balance sheet cannot be prepared without additional information about Arrow Hospitality's assets and liabilities.