Question

P3.9 (LO 2, 3, 4) (Adjusting and Closing) Presented below is the trial balance of the Crestwood Golf Club, Inc. as of December 31. The books are closed annually on December 31. Crestwood Golf Club, Inc. Trial Balance December 31 Credit Debit $ 15,000 13,000 $ 1,100 9,000 350,000 120,000 38,400 Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Land 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 150,000 70,000 400,000 82,000 200,000 5,900 17,600 54,000 80,000 24,000 $815,000 $815,000

Answer 1

7 8 Amount $ Account Title & Explanation Depreciation Expense-Building Accumulated Depreciation-Building Amount $ 4,000 9 1) 10 4,000 11 122) 15,000 Depreciation Expense-Equipment Accumulated Depreciation-Equipment 13 15,000 14 15 3) 3,500 Insurance Expense Pepaid Insurance 16 3,500 17 18 4) 1,600 Accrued Revenue Rent Revenue 19 1,600 460 Bad Debts Expense Allowance for Uncollectible 460 20 21 5) 22 23 24 6) 25 26 27 7) 28 3,600 Salaries &Wages Expense Salaries & Wages Payable 3,600 8,900 Dues Revenue Dues Revenue received in advance 8,900

Nm Ledger Accounts 4 Cash Particulars Bal Debit Credit 5 6 Balance 6 15000 7 8 9 Accounts Receivable Particulars Debit Bal Credit Balance 10 13000 11 12 13 Credit Balance Allowance for Doubtful Particulars Debit Bal Adj. 14 1100 15 460 1560 16 17 18 Debit Credit Balance Prepaid Insurance Particulars Bal Adj. 19 9000 20 3500 5500 21

22 23 Land Particulars Bal Debit Credit Balance 350000 24 25 26 27 Building Particulars Bal Debit Credit Balance 120000 28 29 30 31 Accumulated Depreciation - Building Particulars Debit Credit Bal Adj. 32 Balance 38400 4000 42400 33 34 35 36 Equipment Particulars Bal Debit Credit Balance 37 150000 38 39 40 Accumlated Depreciation - Equipment Particulars Debit Credit Bal Adj. 41 Balance 70000 15000 85000 42

44 Dues Revenue Received in Advance Particulars Debit Credit Adj. Balance 8900 8900 45 46 47 48 49 50 51 Common Stock Particulars Debit Credit Balance 400000 Bal Retained earnings Particulars Bal Debit 52 53 54 55 Credit Balance 82000 56 57 Debit Credit Dues Revenue Particulars Bal Adj. Balance 200000 58 59 8900 191100 60 61 62 Green Fees Revenue Particulars Debit Bal Credit Balance 63 5900

65 66 Debit Credit Rent Revenue Particulars Bal Adj. 67 Balance 17600 1600 19200 68 69 70 71 Depreciation Expense - Building Particulars Debit Credit Adj. 4000 Balance 72 4000 73 74 75 Depreciation Expense - Equipment Particulars Debit Credit Adj. 15000 Balance 15000 76 77 78 79 Insurance Expense Particulars Adj. Debit Balance Credit 3500 80 3500 81 82 83 Accrued Revenue Particulars Adj. Debit Credit Balance 1600 84 1600

86 87 Bad debts Expense Particulars Debit Adj. Balance Credit 460 460 88 89 90 91 92 Credit Salaries & wageExpense Particulars Debit Bal Adj. Balance 80000 93 94 3600 83600 95 96 97 Salaries & Wages Payable Particulars Debit Adj. Credit Balance 3600 98 3600 99 100 101 Utilities Expense Particulars Bal Debit Credit Balance 54000 102 103 104 105 Maintenance & Repairs & Expense Particulars Debit Credit Bal Balance 24000 106

2 (c)Prepare an adjusted trial balance. 3 4 5 5 6 Credit 7 8 9 1,560 10 11 12 13 Adjusted Trial balance of Crestwood as on 31st December Account Title Debit Cash 15,000 Accounts Receivable 13,000 Allowance for Accounts Receivable Prepaid Insurance 5,500 Accrued Revenue 1,600 Land 350,000 Building 120,000 Accumulated Depreciation-Building Equipment 150,000 Accumulated Depreciation-Equipment Salaries & Wages payable Dues Revenue received in advance Common Stock Retained Earnings Dues Revenue Green Fees Revenue 14 42,400 15 16 17 18 19 85,000 3,600 8,900 400,000 82,000 191,100 5,900 20 21 22

23 19,200 24 25 26 27 Rent Revenue Depreciation Expense-Building Depreciation Expense-Equipment Insurance Expense Bad debts Expense Salaries & Wages expense Utilities expense Maintenance & Repairs expense Total 4,000 15,000 3,500 460 83,600 54000 24000 839,660 28 29 30 31 839,660 32 33 (d)Prepare closing entries and post. 34 35 36 Particulars Debit Credit 37 38 39 Dues Revenue Green Fees Revenue Rent Revenue Income Summary 191,100 5,900 19,200 40 41 216,200 42

43 184,560 44 45 46 Income Summary Depreciation Expense-Building Depreciation Expense-Equipment Insurance Expense Bad debts Expense Salaries & Wages expense Utilities expense Maintenance & Repairs expense 47 4,000 15,000 3,500 460 83,600 54,000 24,000 48 49 50 51 52 31,640 Income Summary Retained Earnings 53 31,640 54 55 Posting 56 57 58 Debit Credit 59 Dues Revenue Particulars Bal Adj. Cl. Balance 200000 191100 60 8900 191100 61 0 62

63 64 Debit Credit Green Fees Revenue Particulars Bal Cl. Balance 5900 65 66 5900 0 67 68 69 Debit Credit 70 Rent Revenue Particulars Bal Adj. cl. Balance 17600 1600 19200 71 72 19200 0 73 74 75 Depreciation Expense -Building Particulars Adj. Debit Credit 4000 Balance 4000 76 77 78 79 Debit Depreciation Expense - Equipment Particulars Adj. Cl. Credit 15000 80 Balance 15000 15000 0 81

88 89 Debit Bad debts Expense Particulars Adj. cl. Credit 460 90 Balance 460 460 0 91 92 93 94 Debit Credit 95 Salaries & wageExpense Particulars Bal Adj. cl. Balance 80000 83600 83600 0 96 3600 97 98 99 100 Debit Credit Utilities Expense Particulars Bal cl. 101 Balance 54000 54000 0 102 103 104 105 Debit Credit Maintenance & Repairs & Expense Particulars Bal Cl. 106 Balance 24000 24000 0 107

Maintenance & Repairs & Expense Particulars Bal Debit Credit Balance 24000 24000 0 Cl. Debit Credit 104 105 106 107 108 109 110 1111 112 113 114 115 116 117 118 Income Summary Particulars Revenues Expenses Cl. Balance 216,200 216,200 31,640 0 184,560 31,640 Debit Credit Retained earnings Particulars Bal Income Summary Balance 82000 31,640 113,640