Question

SPECIFIC REQUIREMENTS: 1) Provided on the next page is the trial balance of the RoyalCrest Golf Club, Inc. as of December 31, 2019. They prepare adjusting entries and close their books annually on December 31". Create T-accounts (or general ledger accounts) for each account listed in the trial balance, and enter the balances from the trial balance into your T-accounts (or general ledger accounts) --- and allow a few lines per account. (FYI: I recommend using T-accounts due to their simplicity, but the choice is yours.) In order to save paper, you can place multiple T-accounts (or ledger accounts) on a page. For ledger accounts you can use the standard general ledger account format as illustrated on page 3-11 (p. 11 of Ch. 3) or the T-account format illustrated on page 3-13 through 3-15 (and elsewhere) in Ch. 3. Note that you must create ONE (and only one) T-account (or general ledger account) for each and every account i.e., do not create more than one Cash T-account, more than one Retained Earnings T-account, etc.). You will use the same T-accounts for posting regular transactional entries, adjusting entries, and closing entries. Also, to the extent possible, organize your T-accounts (or general ledger accounts) so that Assets are together, Liabilities are together, etc. (Please note that the assumption in this problem is that the 'regular' (transactional) entries have ALREADY been recorded and posted to the T-accounts (or general ledger), and the trial balance below reflects that fact. (Therefore, you do not have to record the original journal entries that resulted in the balances shown in the trial balance --- and in fact, there is no way that you would be able to figure out what those journal entries were just by looking at the trial balance, anyway.)

Answer 1

RoyalCrest Golf Club, Inc. Transactional entries Date Account 1-Feb Supplies expense Cash Credit Calculation Debit $ 6,000 а $ 6,000 b 1-Sep $ 400,000 $ 100,000 Building Equipment Cash Notes Payable $ 100,000 =(400,000+100,000) *20% $ 400,000 C 1 $ 15,000 -Dec Dividends Dividends Payable $ 15,000 a Adjusting entries 31-Dec Insurance expense Prepaid Insurance $ 14,000 -48,000/24*7 $ 14,000 b $ 5,000 =(40,000*15%)-1,000 31-Dec Bad debts expense Allowance for doubtful accounts $ 5,000 C $ 20,000 =220,000/11 31-Dec Rent Receivable Rent Revenue $ 20,000 d $ 20,000 31-Dec Prepaid Advertising Advertising expense $ 20,000 e $ 40,000 31-Dec Dues Revenue Uneanred Revenue $ 40,000 f $ 25,000 31-Dec Property tax expense Property tax payable $ 25,000 8 $ 2,000 31-Dec Supplies Supplies expense $ 2,000 h $ 4,000 31-Dec Depreciation expense-Building Accumulated Depreciation-Building =(400,000-40,000)/30*4/12 4,000 Sep 1 to Dec 31 = 4 months $ i $ 3,000 31-Dec Depreciation expense-Equipment Accumulated Depreciation Equipment =(100,000-10,000) *10%*4/12 3,000 Sep 1 to Dec 31 = 4 months $ $ 8,000 -400,000*6%*4/12 $ 8,000 j 31-Dec Interest expense Interest payable Closing entries CJE 1 31-Dec Dues Revenue Green Fees Revenue Rent Revenue Income Summary $ 260,000 $ 775,000 $ 240,000 $1,275,000 CJE 2 $ 1,028,000 31-Dec Income Summary Advertising expense Utilities expense Salaries & wages expense Maintenance expense Supplies expense Insurance expense Bad debts expense Property tax expense Depreciation expense-Building Depreciation expense-Equipment Interest expense $ 55,000 $ 230,000 $ 400,000 $ 280,000 $ 4,000 $ 14,000 $ 5,000 $ 25,000 $ 4,000 $ 3,000 $ 8,000 CJE 3 $ 247,000 31-Dec Income Summary Retained Earnings $ 247,000 CJE 4 $ 15,000 31-Dec Retained Earnings Dividends $ 15,000

260,000 775,000 240,000 1,275,000 RoyalCrest Golf Club, Inc. Income Statement For the Year Ended December 31, 2019 Revenues Dues Revenue Green Fees Revenue Rent Revenue Total Revenues Expenses Advertising expense Utilities expense Salaries & wages expense Maintenance expense Supplies expense Insurance expense Bad debts expense Property tax expense Depreciation expense-Building Depreciation expense-Equipment Interest expense Total Expenses Net Income 55,000 230,000 400,000 280,000 4,000 14,000 5,000 25,000 4,000 3,000 8,000 1,028,000 247,000 Statement of Retained Earnings For the Year Ended December 31, 2019 Beginning R/E Net Income Less Dividends Ending R/E 217,000 247,000 (15,000) 449,000

RoyalCrest Golf Club, Inc. Balance Sheet As of December 31, 2019 Assets Current Assets Cash Rent Receivable Accounts Receivable Allowance for doubtful accounts Supplies Prepaid Insurance Prepaid Advertising Total Current Assets 34,000 20,000 40,000 (6,000) 34,000 2,000 34,000 20,000 144,000 Property, Plant & Equipment Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation Equipment Total Property, Plant & Equipment Total Assets 200,000 1,300,000 (204,000) 1,096,000 400,000 (103,000) 297,000 1,593,000 1,737,000 Liabilities & Stockholders Equity Current Liabilities Notes Payable Uneanred Revenue Dividends Payable Property tax payable Interest payable Total Current Liabilities 400,000 40,000 15,000 25,000 8,000 488,000 Stockholders Equity Common Stock Retained earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 800,000 449,000 1,249,000 1,737,000

Date Credit Date Date RoyalCrest Golf Club, Inc. T Accounts Date Debit Date Credit Cash Op bal $ 140,000 1-Feb $ 6,000 1-Sep $ 100,000 Debit Date Rent Receivable $ .. $ 20,000 Debit Date Credit Accounts Receivable $ 40,000 Op bal 31-Dec Debit Date Credit Allowance for doubtful accounts Op bal $ 1,000 31-Dec $ 5,000 Op bal Bal. $ Bal. Bal. $ 6,000 34,000 Supplies - 2,000 $ 20,000 Prepaid Insurance $ 48,000 31-Dec Bal. $ 40,000 Prepaid Advertising Op bal $ . 31-Dec $ 20,000 Land $200,000 Op bal Op bal Op bal $ 31-Dec $ $ 14,000 Bal. Bal. Bal. $ 2,000 Building Op bal $ 900,000 1-Sep $ 400,000 $ 34,000 Accum. Depr.- Building Op bal $200,000 31-Dec $ 4,000 Bal. $ 20,000 Equipment Op bal $300,000 1-Sep $ 100,000 $ 200,000 Accum. Depr. - Equipment Op bal $100,000 31-Dec $ 3,000 Bal. $ 204,000 Bal. $1,300,000 Notes Payable Op bal 1-Sep Bal. Uneanred Revenue Op bal 31-Dec $ . $ 400,000 $400,000 Dividends Payable Op bal 1-Dec Bal. $ 103,000 Property tax payable Op bal $ . 31-Dec $ 25,000 $ - $ 40,000 $ . $ 15,000 $ 400,000 $ 40,000 $ 25,000 Bal. Interest payable Op bal 31-Dec Bal. Common Stock Op bal Bal. Retained Earnings Op bal $ 15,000 CJE3 $ 15,000 Bal. Dividends $ 217,000 Op bal $ $247,000 1-Dec $ 15,000 CJE4 $ 800,000 $ $ 8,000 CJE4 $ 15,000 $ 8,000 $ 800,000 Bal. Bal. $ Bal. Income Summary $1,028,000 CJE1 $ 247,000 Bal. Dues Revenue $ 40,000 Op bal $260,000 $ 449,000 Green Fees Revenue Op bal $775,000 $ 775,000 $1,275,000 $300,000 CJE 2 CJE 3 31-Dec CJE1 Rent Revenue Op bal $ 240,000 31-Dec $ 220,000 $ 20,000 CJE 1 CJE 1 Bal. $ - Bal. $ Advertising expense $ 75,000 31-Dec $ CJE 2 $ Op bal Op bal Bal. Utilities expense $230,000 CJE 2 20,000 55,000 Bal. $ . Salaries & wages expense $400,000 CJE 2 $400,000 Bal. $ . Maintenance expense $280,000 CJE 2 $ 280,000 Op bal Op bal $ 230,000 Bal. Bal. $ - Bal. S - Bal. 1-Feb Supplies expense 6,000 31-Dec $ CJE 2 $ $ $ Property tax expense $ 25,000 CJE 2 $ 31-Dec Insurance expense $ 14,000 CJE 2 31-Dec Bad debts expense $ 5,000 CJE 2 2,000 4,000 31-Dec $ 14,000 $ 5,000 25,000 Bal. Bal. Bal. $ - Depreciation expense-Building 31-Dec $ 4,000 CJE 2 $ 4,000 Bal. $ - Depreciation expense-Equipment 31-Dec $ 3,000 CJE 2 $ 3,000 $ Interest expense $ 8,000 CJE 2 31-Dec $ 8,000 Bal. $ - Bal. Bal.

Adjusted TB Debit Credit 34,000 20,000 40,000 6,000 2,000 34,000 20,000 200,000 1,300,000 204,000 400,000 RoyalCrest Golf Club, Inc. Account Names Cash Rent Receivable Accounts Receivable Allowance for doubtful accounts Supplies Prepaid Insurance Prepaid Advertising Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Notes Payable Uneanred Revenue Dividends Payable Property tax payable Interest payable Common Stock Retained Earnings Dividends Dues Revenue Green Fees Revenue Rent Revenue Advertising expense Utilities expense Salaries & wages expense Maintenance expense Supplies expense Insurance expense Bad debts expense Property tax expense Depreciation expense-Building Depreciation expense-Equipment Interest expense Totals 103,000 400,000 40,000 15,000 25,000 8,000 800,000 217,000 15,000 260,000 775,000 240,000 55,000 230,000 400,000 280,000 4,000 14,000 5,000 25,000 4,000 3,000 8,000 3,093,000 3,093,000