Question

Crane Creek Golf Inc. was organized on July 1, 2022. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown as follows CRANE CREEK GOLF INC. Trial Balance September 30, 2022 Unadiusted Adiusted Dr. Cr. Dr. Cash $ 6,450 $ 6,450 ccounts Receivable 590 1,260 Supplies 1,200 Prepaid Rent 1,780 990 Equipment 15,500 15,500 Accumulated Depreciation-Equipment $310 Yates Payable $ 5,500 5,500 Accounts Payable 1,300 1.300 Salaries and Wages Payable Interest Payable Jneamed Rent Revenue 1,090 560 Common Stock 14,200 14,200 Betained Eamnings Dividends 310 Service Revenue 18,600 19.270 Rent Revenue 1,090 1,600 Salaries and Wages Experise 8.920 9,170 Rent Expense 790 1,680 Depreciation Expense Supplies Expense Jilities Expense 6,240 6,240 Interest Expense $41,780 $41,790 $43,2165 $43,375 550 310 ournalize the adjusting entries that were made. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit To record service revenue eamed) To record rent expense) To record supplies used) To record monthly depreciation) To record interest on notes payable) To record uneamed rent revenue earned)

Answer 1

Journalizing the Adjusting Entries:-

CRANE CREEK GOLF INC.

Adjusting Entries

September 30,2022

Date	Accounts Title and Explanation	Debit	Credit
September 30	Accounts Receivable ($1,260-$590)	$670
	Service Revenue		$670
	(To Record Service Revenue Earned)
September 30	Rent Expense	$890
	Prepaid Rent ($1,780-$890)		$890
	(To Record Rent Expense)
September 30	Supplies Expense	$900
	Supplies ($1,200-$300)		$900
	(To Record Supplies Used)
September 30	Depreciation Expense	$310
	Accumulated Depreciation, Equipment		$310
	(To Record Monthly Depreciation)
September 30	Interest Expense	$55
	Interest Payable		$55
	(To Record interest on Notes Payable)
September 30	Unearned Rent Revenue ($1,090-$580)	$510
	Rent Revenue		$510
	(To Record Unearned Rent Revenue Earned)
September 30	Salaries and Wages Expense	$550
	Salaries and Wages Payable		$550
	(To Record Accrued Salaries)

Preparing Financial Statements for Three Months Ending September 30:-

CRANE CREEK GOLF INC.

Income Statement

For the Quarter Ended September 30,2022

Accounts	Amount	Amount
Revenues:-
Service Revenue	$19,270
Rent Revenue	1,600
Total Revenues		$20,870
Less:- Expenses:-
Salaries and Wages Expense	$9,470
Rent Expense	1,680
Depreciation Expense	310
Supplies Expense	900
Utilities Expense	6,240
Interest Expense	55
Total Expenses		$(18,655)
Net Income		$2,215

CRANE CREEK GOLF INC.

Statement of Retained Earnings

For the Quarter Ended September 30,2022

Accounts	Amount
Retained Earnings, Beginning	$0
Add:- Net Income	2,215
	$2,215
Less:- Dividends	(310)
Retained Earnings, Ending	$1,905

CRANE CREEK GOLF INC.

Balance Sheet

September 30,2022

Accounts	Amount	Amount
Assets:-
Current Assets:-
Cash	$6,450
Accounts Receivable	1,260
Supplies	300
Prepaid Rent	890
Total Current Assets		$8,900
Fixed Assets:-
Equipment	$15,500
Less:- Accumulated Depreciation, Equipment	(310)
Total Fixed Assets		$15,190
Total Assets		$24,090
Liabilities and Stockholders Equity:-
Current Liabilities:-
Accounts Payable	$1,300
Salaries and Wages Payable	550
Interest Payable	55
Unearned Rent Revenue	580
Total Current Liabilities		$2,485
Long-term Liabilities:-
Notes Payable	$5,500
Total Long-term Liabilities		$5,500
Stockholders Equity:-
Common Stock	$14,200
Retained Earnings, Ending	$1,905
Total Stockholders Equity		$16,105
Total Liabilities and Stockholders Equity		$24,090

Identification of Accounts which should be closed on September 30:-

Accounts	Closed or Not Closed
Cash	Not closed
Accounts Receivable	Not closed
Supplies	Not closed
Prepaid Rent	Not closed
Equipment	Not closed
Accumulated Depreciation, Equipment	Not closed
Notes Payable	Not closed
Accounts Payable	Not closed
Salaries and Wages Payable	Not closed
Interest Payable	Not closed
Unearned Rent Revenue	Not closed
Common Stock	Not closed
Retained Earnings	Not closed
Dividends	Closed
Service Revenue	Closed
Rent Revenue	Closed
Salaries and Wages Expense	Closed
Rent Expense	Closed
Depreciation Expense	Closed
Supplies Expense	Closed
Utilities Expense	Closed
Interest Expense	Closed