The Skyline Motel opened for business on May 1, 2015. Its trial balance before adjustment on May 31 is as follows.

SKYLINE MOTEL
Trial Balance
May 31, 2015

Account Number Debit Credit
101 Cash $ 3,482
126 Supplies 2,146
130 Prepaid Insurance 2,184
140 Land 13,720
141 Buildings 59,040
149 Equipment 15,240
201 Accounts Payable $ 11,256
208 Unearned Rent Revenue 3,300
275 Mortgage Payable 40,000
301 Common Stock 35,606
429 Rent Revenue 10,476
610 Advertising Expense 630
726 Salaries Wages Expense 3,307
732 Utilities Expense 889
$100,638 $100,638

In addition to those accounts listed on the trial balance, the chart of accounts for Skyline Motel also contains the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:

(1) Prepaid insurance is a 1-year policy starting May 1, 2015.
(2) A count of supplies shows $740 of unused supplies on May 31.
(3) Annual depreciation is $2,952 on the buildings and $1,524 on equipment.
(4) The mortgage interest rate is 12%. (The mortgage was taken out on May 1.)
(5) Two-thirds of the unearned rent revenue has been earned.
(6) Salaries of $770 are accrued and unpaid at May 31.

Journalize the adjusting entries on May 31.

Georgia orchards produced a good crop of peaches this year. after preparing the following income statement, the company is concerned about the net loss on its no. 3 peaches. georgia orchards income statement for year ended december 31, 2017 no. 1 no. 2 no. 3 combined sales (by grade) no. 1: 300,000 ibs. @ $1.50/lb $ 450,000 no. 2: 300,000 ibs. @ $1.00/lb $ 300,000 no. 3: 750,000 ibs. @ $0.25/lb $ 187,500 total sales $ 937,500 costs tree pruning and care @ $0.30/ib 90,000 90,000 225,000 405,000 picking, sorting, and grading @ $0.15/ib 45,000 45,000 112,500 202,500 delivery costs 15,000 15,000 37,500 67,500 total costs 150,000 150,000 375,000 675,000 net income (loss) $ 300,000 $ 150,000 $ (187,500 ) $ 262,500 in preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. the company’s delivery cost records show that $30,000 of the $67,500 relates to crating the no. 1 and no. 2 peaches and hauling them to the buyer. the remaining $37,500 of delivery costs is for crating the no. 3 peaches and hauling them to the cannery. required: 1. prepare reports showing cost allocations on a sales value basis to the three grades of peaches. separate the delivery costs into the amounts directly identifiable with each grade. then allocate any shared delivery costs on the basis of the relative sales value of each grade. (do not round intermediate calculations.)