Question

P3-9 (L02,3,4,5) (Adjusting and Closing) Presented below is the trial balance of the Crestwood Golf Club, Inc. as of Decem- ber 31. The books are closed annually on December 31. CRESTWOOD GOLF CLUB, INC. TRIAL BALANCE DECEMBER 31 Credit Debit $ 15,000 13,000 $ 1,100 9,000 350,000 120,000 38,400 150,000 Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation Equipment Common Stock Retained Earnings Dues Revenue Green Fees Revenue Rent Revenue Utilities Expenses Salaries and Wages Expense Maintenance and Repairs Expense 70,000 400,000 82,000 200,000 5,900 17,600 54,000 80,000 24,000 $815,000 $815,000

Answer 1

LEDGER ACCOUNTS Cash Credit Date Particulars Debit Credit Balance Debit Credit $15.000 (b) Prepare adjusting entries and post to the ledger accounts. JOURNAL - Adjusting Entries Date Account Debit Dec. 31 Depreciation Expense $4,000 Accumulated Dep. - Building Credit Dec. 31 $4.000 S1 100 Dec. 31 $15.000 Depreciation Expense Accumulated Dep. - Equipment $15.000 Crestwood Golf Club, Inc Unadjusted Trial Balance As on December 31 Debit Cash $15.000 Accounts receivable $13,000 Allowance for Doubtful Accounts Prepaid Insurance $9.000 Land $3.50,000 Building $1,20,000 Accumulated Depreciation - Building Equipment $1,50,000 Accumulated Depreciation - Equipment Common Stock Retained earnings Dues revenue Green fees revenue Rent revenue Utilities expense $54.000 Salaries and wages expense $80,000 Maintenance and repair expense $24,000 $38,400 Dec. 31 3500 Insurance Expense Prepaid Insurance 3500 $70,000 Accounts receivable Debit Credit Date Particulars Dec. 31 1600 Balance Debit Credit $13,000 $14,600 Accounts receivable Rent revenue $4,00.000 $82,000 $2,00,000 $5.900 $17600 1600 Dec. 31 Dec. 31 1600 Dec 31 460 Bad debt expense Allowance for Doubtful Accounts 460 Dec. 31 3600 Salaries and wages expense Salary payable 3600 Total $815,000 $815,000 Dec. 31 8900 Dues revenue Unearned Dues revenue 8900 Date Credit Building Credit Allowance for Doubtful Accounts Balance Particulars Debit Debit Credit $1.100 460 $1,560 Date Particulars Debit Balance Debit Credit $1,20,000 Dec 31 Dec. 3 Dec. 31 (c) Prepare an adjusted Trial Balance Crestwood Golf Club, Inc Adjusted Trial Balance As on December 31 Credit Prepaid Insurance Debit Credit Debit $15.000 $14,600 Date Particulars Balance Debit Credit $9.000 $5.500 $1,560 $5,500 Dec. 31 Dec. 31 3500 Date $3,50,000 $1,20,000 Accumulated Depreciation - Building Balance Particulars Debit Credit Debit Credit $38,400 $4,000 $42,400 $42,400 Dec. 31 Dec. 31 $1,50.000 Land Cash Accounts receivable Allowance for Doubtful Accounts Prepaid Insurance Land Building Accumulated Depreciation - Building Equipment Accumulated Depreciation - Equipment Common Stock Retained earnings Dues revenue Green fees revenue Rent revenue Utilities expense Salaries and wages expense Maintenance and repair expense Depreciation Expense Insurance Expense Bad debt expense Salary payable Unearned Dues revenue $85,000 $4,00 000 $82,000 $1,91,100 $5.900 $19,200 Date Particulars Debit Credit Balance Debit Credit $3.50,000 Dec. 31 Equipment Debit Credit Date Particulars Balance Debit Credit $1.50,000 $54,000 $83,600 $24,000 $19,000 $3,500 $460 Dec. 31 Common Stock Date Particulars Debit Credit Balance Debit Credit $3,600 $8.900 Dec 31 $4,00 000 Date Accumulated Depreciation - Equipment Particulars Debit Credit Balance Debit Credit $70,000 $15.000 $85.000 Dec. 31 Dec. 31 Retained earnings Debit Credit Date Particulars Dec 31 Dec. 31 Balance Debit Credit $82.000 $1,13.640 Closing $31,640 Dues revenue Debit Credit Date Particulars Dec 31 Dec. 31 Dec 31 Balance Debit Credit $2,00.000 $1,91,100 SO Closing 8900 $1,91,100 Green fees revenue Debit Credit Balance Date Particulars Debit Dec. 31 Dec. 31 Credit $5.900 $0 Closing $5.900 Rent revenue Balance Date Particulars Debit Credit Debit Dec. 31 Dec. 31 Dec 31 Credit $17.600 $19,200 1600 Closing $19,200 Utilities expense Debit Credit Date Particulars Credit Dec. 31 Dec. 31 Balance Debit S54,000 SO Closing $54,000 Date Particulars Salaries and wages expense Debit Credit Balance Debit Credit $80,000 3600 $83.600 SO Dec. 31 Dec. 31 Dec. 31 Closing $83,600 Depreciation Expense Debit Credit Date Particulars Dec 31 Dec. 31 Dec 31 $4.000 $15,000 Balance Debit Credit $4,000 $19.000 $ Closing $19.000 Date Maintenance and repair expense Balance Particulars Debit Credit Debit Credit $24,000 Closing $24,000 SO Dec. 31 Dec. 31 Insurance Expense Debit Credit Date Particulars Balance Debit Credit $3.500 SO 3500 Dec. 31 Dec. 31 Closing $3,500 Salary payable Debit Credit Date Particular: Balance Debit Credit 3600 Bad debt expense Debit Credit Dec. 31 3600 Date Particulars Balance Debit Credit $460 $0 Dec 31 460 Dec. 31 Closing $460 Date Particulars Unearned Dues revenue Debit Credit Balance Debit Credit 8900 8900 Dec 31