Question

Problem 4-4A Salt Creek Golf Inc. was organized on July 1, 2017. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 ar shown here. SALT CREEK GOLF INC. Trial Balance September 30, 2017 Unadjusted Cr Adjusted Dr. Dr. Cr. Cash Accounts Receivable $ 6,500 630 1,200 1,700 16,000 6,500 1,280 420 850 16,000 Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable 320 5,500 1,800 610 5,500 1,800 Salaries and Wages Payable Interest Payable Unearned Rent Revenue 1,470 14,600 800 14,600 Common Stock Retained Earnings Dividends 500 500 to search

Answer 1

	Salt Creek Golf Inc.
	Adjusting Entries
	General,Journal	Debit	Credit
	Accounts Receivable=($1280-$630)	$       650.00
	To Service Revenue		$       650.00
	(Being amount of service revenue earned)
	Rent Expenses=($1700-$850)	$       850.00
	To Prepaid Rent		$       850.00
	(Being amount of Rent Expense)
	Supplies Expenses=($1200-$420)	$       780.00
	To Supplies		$       780.00
	(Being amount of supplies expenses)
	Depreciation	$       320.00
	To Accumulated Depreciation		$       320.00
	(Being amount of depreciation)
	Interest Expense	$         55.00
	To Interest Payable		$         55.00
	(Being amount of Interest Expense)
	Unearned Rent Revenue=($1470-$800)	$       670.00
	To Rent Revenue		$       670.00
	(Being amount of unearned rent revenue being earned)
	Salaries Expenses	$       610.00
	To Salary Payable		$       610.00
	(Being amount of accrued salaries)
	Salt Creek Golf Inc.
	Income Statement
	For the Quarter ended September 30th,2017
	Revenue
	Service Revenue	$ 18,250.00
	Rent Revenue	$   1,810.00
	Total Revenue=(A)		$ 20,060.00
	Expenses
	Salaries & Wages Expense	$   9,550.00
	Rent Expense	$   1,620.00
	Supplies Expense	$       780.00
	Utilities Expenses	$   5,870.00
	Depreciation Expense	$       320.00
	Interest Expense	$         55.00
	Total Expenses=(B)		$ 18,195.00
	Net Income=(A)-(B)		$   1,865.00
	Salt Creek Golf Inc.
	Retained Earnings Statement
	For the Quarter ended September 30th,2017
	Beginning Retained Earnings	$                -
	Add: Net Income	$   1,865.00
	Less: Dividend Paid	$       500.00
	Ending Retained Earnings	$   1,365.00
	Salt Creek Golf Inc.
	Balance Sheet
	September 30th,2017
	Assets
	Current Assets
	Cash	$   6,500.00
	Accounts Receivable	$   1,280.00
	Supplies	$       420.00
	Prepaid Rent	$       850.00
	Total Current Assets		$   9,050.00
	Property,Plant & Equipment
	Equipment	$ 16,000.00
	Less: Accumulated Depreciatrion	$     -320.00	$ 15,680.00
	Total Assets		$ 24,730.00
	Liabilities & Stockholder's Equity
	Current Liabilities
	Accounts Payable	$   1,800.00
	Notes Payable	$   5,500.00
	Unearned Rent Revenue	$       800.00
	Salaries & Wages Payable	$       610.00
	Interest Payable	$         55.00
	Total Current Liabilities		$   8,765.00
	Stockholder's Equity
	Common Stock	$ 14,600.00
	Retained Earnings	$   1,365.00
	Total stockholder's equity		$ 15,965.00
	Total Liabilities & Stockholder's Equity		$ 24,730.00