Question: Presented below is the trial balance of the Crestwood Golf Club, Inc. as of December 31. The books are closed annually on December 31.
CRESTWOOD GOLF CLUB, INC. TRIAL BALANCE DECEMBER 31 |
| Debit | Credit |
Cash | \(15,000 | |
Accounts receivables | 13,000 | |
Allowance for doubtful accounts | | \)1,100 |
Prepaid insurance | 9,000 | |
Land | 350,000 | |
Building | 120,000 | |
Accumulated depreciation – building | | 38,400 |
Equipment | 150,000 | |
Accumulated depreciation – equipment | | 70,000 |
Common stock | | 400,000 |
Retained earnings | | 82,000 |
Dues revenue | | 200,000 |
Green fees revenue | | 5,900 |
Rent revenue | | 17,600 |
Utilities expenses | 54,000 | |
Salaries and wages expenses | 80,000 | |
Maintenance and repair expenses | 24,000 | |
| \(815,000 | \)815,000 |
Instructions
(a) Enter the balances in ledger accounts. Allow five lines for each account.
(b) From the trial balance and the information given below, prepare annual adjusting entries and post to the ledger accounts. (Omit explanations.)
(1) The buildings have an estimated life of 30 years with no salvage value (straight-line method).
(2) The equipment is depreciated at 10% per year.
(3) Insurance expired during the year \(3,500.
(4) The rent revenue represents the amount received for 11 months for dining facilities. The December rent has not yet been received.
(5) It is estimated that 12% of the accounts receivable will be uncollectible.
(6) Salaries and wages earned but not paid by December 31, \)3,600.
(7) Dues received in advance from members $8,900 were recorded as Dues Revenue.
(c) Prepare an adjusted trial balance.
(d) Prepare closing entries and post.
