Question

balance at the end of the month: Credit 875 The Lemur Golf Company Unadjusted Trial Balance September 30, 2019 Account Name Debit Cash 21,610 Accounts Receivable 11,900 Prepaid Insurance 6,000 Supplies 1,820 Equipment 8,750 Accumulated Depreciation - Equip Automobile 26,750 Accounts Payable Unearned Golfing Revenue Contributed Capital Dividends 2,400 Retained Earnings Golfing Adventure Revenue Golf Lesson Revenue Salaries Expense 28,210 Rent Expense 13,790 Telephone Expense 5,250 Travel Expense 1,260 Interest Expense 14,870 142,610 10,585 2,800 37,800 20,000 55,550 15,000 142,610 Make the following adjusting journal entries for the month: a Depreciation: the equipment depreciation is $875 and automobile depreciation is $268. b Insurance the prepaid account represents 6 months of insurance, adjust for Sept. c Salary: payday is every Friday (5-day work week), the weekly payroll is $2,000. Adjust for salaries accrued if the month ends on Tuesday d The unearned golfing revenue represents two golf adventures; one adventure was completed during the month. Required: Prepare the adjusting journal entries. After preparing the adjusting entries, prepare an Adjusted Trial Balance Prepare an Income Statement using the Adjusted Trial Balance Prepare a Statement of Retained Earnings. Prepare a Balance Sheet.

Answer 1

Credit Debit $3,240 Adjusting entries General Journal Depreciation expense Equipment Automobile Insurance expense Prepaid insurance Salaries Salaries payable Unearned revenue Service revenue $1,000 $875 $268 $6,000/6 $1,000 $2,000/5*3 $1,200 $2,800/2 $1,400 $1,200 $1,400 September 30, 2019 Unadjusted Trial Balance Debit Credit $21,610 $11,900 $6,000 $1,8201 $8,750 $875 $26,7501 $10,585 $2,8001 $37,800 Cash Accounts receivable Prepaid insurance Supplies Equipment Accumulated Depreciation- Equipment Automobile Accumulated Depreciation - Automobile Accounts payable Salaries payable Unearned Golfing Revenue Contributed Capital Dividends Retained Earnings Golf Adventuring Revenue Golf Lesson Revenue Salaries expense Rent expense Telephone expenses Travel expenses Interest expense Depreciation expense - Equipment Depreciation expense - Automobile Insurance expense Totals Adjustments Adjusted Trial Balance Debit Credit Debit Credit $21,610 $11,900 $1,000 $5,000 $1,820 $8,7501 $1,300 $2,175 $26,750 $268 $268 $10,585 $1,200 $1,200 $1,400 $1,400 $37,800 $2,400 $20,000 $1,4001 $56,950 $15,000 $1,200 $29,410 $13,790 $5,250 $1,260 $14,870 $1,300 $1,300 $268 $268 $1,000 $1,000 $5,168 $5,168 $145,378 $145,378 $2,400 $20,000 $55,550 $15,000 $28,210 $13,790 $5,2501 $1,260 $14,870 $142,6101 $142,610 $56,950 $15,000 $71,9501 The Lemur Golf Club Income Statement For The Month Ended September 30, 2019 Golf Adventuring Revenue Golf Lesson Revenue Total revenue Less: Operating Expenses Salaries expense $29,410 Rent expense $13,790 Telephone expenses $5,250 Travel expenses $1,260 Interest expense $14,870 Depreciation expense - Equipment $1,300 Depreciation expense - Automobile $268 Insurance expense $1,000 Total Operating expenses Net Income $67,148 $4,802 The Lemur Golf Club Statement of Retained Earnings For The Month Ended September 30, 2019 Opening balance, Retained Earnings Add: Net Income during the year $20,000 $4,802 $24,802 $2,400 $22,402 Less: Dividend Closing balance, Retained Earnings The Lemur Golf Club Balance Sheet As on September 30, 2019 Assets Current Assets: Cash $21,6101 Accounts Receivable $11,900 Prepaid insurance $5,000 Supplies $1,820 Total Current Assets $40,330) Plant, Property and Equipment: Equipment Accumulated Depreciation Equipment Automobile Accumulated Depreciation- Automobile $6,575 $8,750 -$2,175 $26,750 - $268 $26,482 $73,387 Total Assets Liabilities and Owners' Equity Current Liabilities: Accounts payable Salaries payable Unearned Golfing Revenue Total current liabilities $10,585 $1,200 $1,400 $13,185 Owners' Equity Contributed Capital Retained earnings Total Total Liabilities and Owners' Equity $37,800 $22,402 $60,2021 $73,387