Question

Presented below is the trial balance of the Buffalo Golf Club, Inc. as of December 31. The books are closed annually on December 31.

BUFFALO GOLF CLUB, INC. TRIAL BALANCE DECEMBER 31
		Debit			Credit
Cash		$17,550
Accounts Receivable		14,700
Allowance for Doubtful Accounts					$1,200
Prepaid Insurance		9,500
Land		353,200
Buildings		150,000
Accumulated Depreciation-Buildings					48,000
Equipment		196,500
Accumulated Depreciation-Equipment					91,700
Common Stock					381,500
Retained Earnings					158,117
Dues Revenue					204,200
Green Fees Revenue					5,703
Rent Revenue					17,600
Utilities Expenses		58,420
Salaries and Wages Expense		82,100
Maintenance and Repairs Expense		26,050
		$908,020			$908,020

A)Please prepare the balances in ledger accounts

B) From the trial balance and the information given below, prepare annual adjusting entries.

(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 $3,550.
(4)		The rent revenue represents the amount received for 11 months for dining facilities. The December rent has not yet been received. (Use Rent Receivable account.)
(5)		It is estimated that 12% of the accounts receivable will be uncollectible.
(6)		Salaries and wages earned but not paid by December 31, $3,821.
(7)		Dues received in advance from members $9,357, were recorded as Dues Revenue.

c) Post to the ledger accounts

D) Prepare an adjusted trial balance

E) Prepare closing entries

F) Post closing entries

Answer 1

Journal Entries
Date/No	Account	Dr/Cr	Amount
1	Depreciation - Building	Debit	5000
	Accumulated Depreciation-Buildings	Credit	5000
2	Depreciation - Equipment	Debit	9170
	Accumulated Depreciation-Equipment	Credit	9170
3	Insurance Expense	Debit	3550
	Prepaid Insurance	Credit	3550
4	Rent Receivable	Debit	1600
	Rent Revenue	Credit	1600
5	Bad Debt	Debit	164
	Allowance for Doubtful Accounts	Debit	1200
	Accounts Receivable	Credit	1764
6	Salaries and Wages Expense	Debit	3821
	Salaries and Wages Payable	Credit	3821
7	Dues Revenue	Debit	9357
	Deferred Revenue	Credit	9357

Unadjusted Trial

Trail Balance
Account	Closing Debit	Closing Credit
Cash	17550
Accounts Receivable	12936
Allowance for Doubtful Accounts
Prepaid Insurance	5950
Land	353200
Buildings	150000
Accumulated Depreciation-Buildings		53000
Equipment	196500
Accumulated Depreciation-Equipment		100870
Common Stock		381500
Retained Earnings		158117
Dues Revenue		194843
Green Fees Revenue		5703
Rent Revenue		19200
Utilities Expenses	58420
Salaries and Wages Expense	85921
Maintenance and Repairs Expense	26050
Depreciation - Building	5000
Depreciation - Equipment	9170
Insurance Expense	3550
Rent Receivable	1600
Bad Debt	564
Salaries and Wages Payable		3821
Deferred Revenue		9357
	926411	926411

Income Statement
Revenues & Gains
	Dues Revenue	194843
	Green Fees Revenue	5703
	Rent Revenue	19200
	Total Revenues and Gains	219746
Expenses & Losses
	Utilities Expenses	58420
	Salaries and Wages Expense	85921
	Maintenance and Repairs Expense	26050
	Depreciation - Building	5000
	Depreciation - Equipment	9170
	Insurance Expense	3550
	Bad Debt	564
	Total Expenses & Losses	188675
	Net profit	31071

Adjusted Trial

Trail Balance
Account	Debit	Credit
Cash	17550
Accounts Receivable	12936
Prepaid Insurance	5950
Land	353200
Buildings	150000
Accumulated Depreciation-Buildings		53000
Equipment	196500
Accumulated Depreciation-Equipment		100870
Common Stock		381500
Retained Earnings		189188
Rent Receivable	1600
Bad Debt
Salaries and Wages Payable		3821
Deferred Revenue		9357
	737736	737736