Question

Problem 3-9 Presented below is the trial balance of the Headland Golf Club, Inc, as of December 31. The books are closed annually on December 31 HEADLAND GOLF CLUB, INC TRIAL BALANCE DECEMBER 31 Debit $18,820 15,100 Credit Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance 9,570 352 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 198,100 2,100 183,893 98,200 5,820 19,800 140 84,410 26,420 $911,460 $911,460

Answer 1

Ans.	HEADLAND GOLD CLUB, INC.
	Adjusting Entries
	Date	Accounts and Titles				Dr.($)	Cr.($)
	1)	Depreciation Expense				5,000
		To Accumulated Depreciation-Building					5,000
		(Being Depreciation expense for the year)
	2)	Equipment Expense				19,810
		To Accumulated Depreciation-Equipment					19,810
		(Being Depreciation expense for the year)
	3)	Insurance expense				3,340
		To Prepaid Insurance					3,340
		(Being Insurance exprired during the year)
	4)	Rent Revenue				1,800
		To Rent Receivable					1,800
		(Being rent revenue accrued during the year)
	5)	Bad Debts				1,812
		To Allowance for bad debts					1,812
		(Being 12% accounts receivables not recoverable)
	6)	Salaries and wages				3,292
		To Outstanding Salaries and wages					3,292
		(Being salaries and wages not paid during the year)
	7)	Dues Revenue				9,438
		Unearned Dues Revenue					9,438
		(Being dues revenue received in advance)
Ans.	HEADLAND GOLD CLUB, INC.
	Closing Entries
	Date	Accounts and Titles				Dr.($)	Cr.($)
	1)	Income Summary				235,058
		To Dues Revenue					207,638
		To Green Fees Revenue					5,820
		To Rent Revenue					21,600
		(To close revenue accounts)
	2)	Utilities Expense				56,140
		Salaries and Wages Expense				87,702
		Maintenance and Repais Expense				26,420
		Depreciation Expense				24,810
		Insurance Expence				3,340
		Bad Debts Expense				610
		To Income Summary					199,022
		(To close Expense accounts)
	3)	Income Summary				36,036
		To Retained Earnings					36,036
		(To close net income/loss)