Question

Would like to check my work with this. Second picture shows change to problem that professor made, skip requirement a. Thank you.
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 Debit Credit Cash $ 15,000 Accounts Receivable 13,000 Allowance for Doubtful Accounts $ 1,100 Prepaid Insurance 9,000 Land 350,000 Buildings 120,000 Accumulated Depreciation-Buildings 38,400 Equipment 150,000 Accumulated Depreciation-Equipment 70,000 Common Stock 400,000 Retained Earnings 82,000 Dues Revenue 200,000 Green Fees Revenue 5,900 Rent Revenue 17,600 Utilities Expenses 54,000 Salaries and Wages Expense 80,000 Maintenance and Repairs Expense 24,000 $815,000 $815,000 Instructions a. Enter the balances in ledger accounts. Allow five lines for each account. b. From the trial balance and the information given below, prepare annual adjusting entries and post to the ledger accounts. (Omit explanations.) 1. The buildings have an estimated life of 30 years with no salvage value (straight-line method). 2. The equipment is depreciated at 10% per year. 3. Insurance expired during the year $3,500. 4. The rent revenue represents the amount received for 11 months for dining facilities. The December rent has not yet been received. 5. It is estimated that 12% of the accounts receivable will be uncollectible. 6. Salaries and wages earned but not paid by December 31, $3,600. 7. Dues received in advance from members $8,900 were recorded as Dues Revenue. c. Prepare an adjusted trial balance. d. Prepare closing entries and post.

Answer 1

Crestwood Golf Club, Inc. Journal entries Date Account 1 Depreciation expense-Building Accumulated Depreciation-Building Credit Debit $ 4,000 Calculation 120000/30 years $ 4,000 N $ 15,000 150000*10% Depreciation expense-Equipment Accumulated Depreciation-Equipment $ 15,000 3 $ 3,500 Insurance expense Prepaid Insurance $ 3,500 4 $ 1,600 17600/11 months Rent Receivable Rent Revenue $ 1,600 5 $ 460 (13000*12%)-1100 Bad debts expense Allowance for doubtful accounts $ $ 460 6 $ 3,600 Salaries & wages expense Salaries & wages payable $ 3,600 $ 8,900 $ 8,900 7 Unearned Revenue Dues Revenue Closing entries CJE1 Dues Revenue Green Fees Revenue Rent Revenue Income Summary $ 191,100 $ 5,900 $ 19,200 $ 216,200 $ 184,560 CJE 2 Income Summary Utilities expense Salaries & wages expense Maintenance & repairs expense Bad debts expense Depreciation expense-Building Depreciation expense-Equipment Insurance expense $ 54,000 $ 83,600 $ 24,000 $ 460 $ 4,000 $ 15,000 $ 3,500 CJE 3 $ 31,640 Income Summary Retained Earnings $ 31,640

Crestwood Golf Club, Inc. T Accounts Date Debit Date Cash Op bal $ 15,000 Credit Date Credit Debit Date Credit Accounts Receivable $ 13,000 Date Debit Date Credit Date Allowance for doubtful accounts Op bal $ 1,100 Op bal 5 $ 460 4 Debit Date Rent Receivable $ $ 1,600 Op bal Bal. Bal. $ 1,560 Bal. $ 15,000 Prepaid Insurance $ 9,000 3 $ 13,000 Land $ 350,000 Bal. Building $ 120,000 $ 1,600 Accum. Depr.- Building $ 38,400 1 $ 4,000 Op bal Op bal Op bal Op bal $ 3,500 Bal. Bal. Bal. $ 42,400 $ 5,500 Equipment $ 150,000 Bal. Uneanred Revenue $350,000 Accum. Depr. - Equipment Op bal $ 70,000 2 $ 15,000 $ 120,000 Salaries & wages payable $ 6 $ 3,600 Op bal Op bal Op bal $ $ 8,900 7 Bal. $ 85,000 $ 3,600 Bal. $ 8,900 $ 150,000 Common Stock Op bal Bal. Retained Earnings Op bal CJE 3 Bal. Income Summary $ 184,560 CJE 1 $ 31,640 $400,000 $216,200 $ 82,000 $ 31,640 CJE 2 CJE 3 $400,000 Bal. $ 113,640 Bal. Green Fees Revenue Utilities expense Bal. Dues Revenue $ 8,900 Op bal $191,100 $ Rent Revenue Op bal $ 19,200 4 7 $ 200,000 Op bal $ 5,900 $ 54,000 $ 17,600 Op bal $ 1,600 CJE 1 CJE 1 $ 5,900 CJE 1 CJE 2 $ 54,000 $ Bal. $ Salaries & wages expense $ 80,000 $ 3,600 CJE 2 $ 83,600 Bal. $ Maintenance & repairs expense Op bal $ 24,000 CJE 2 $ 24,000 Bal. Bad debts expense $ 460 CJE 2 Bal. $ Depreciation expense-Building 1 $ 4,000 CJE 2 $ 4,000 5 Op bal 6 $ 460 Bal. Bal. $ - Bal. $ Bal. $ Depreciation expense-Equipment 2 $ 15,000 CJE 2 $ 15,000 $ Insurance expense $ 3,500 CJE 2 3 $ 3,500 Bal. $ Bal. $ -

Adjustments Debit Credit Unadjusted TB Debit Credit 15,000 13,000 1,100 460 1,600 3,500 9,000 350,000 120,000 38,400 4,000 150,000 70,000 Crestwood Golf Club, Inc. Account Names Cash Accounts Receivable Allowance for doubtful accounts Rent Receivable Prepaid Insurance Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation Equipment Salaries & wages payable Unearned Revenue Common Stock Retained Earnings Dues Revenue Green Fees Revenue Rent Revenue Utilities expense Salaries & wages expense Maintenance & repairs expense Bad debts expense Depreciation expense-Building Depreciation expense-Equipment Insurance expense Totals 15,000 3,600 8,900 Adjusted TB Debit Credit 15,000 13,000 1,560 1,600 5,500 350,000 120,000 42,400 150,000 85,000 3,600 8,900 400,000 82,000 191,100 5,900 19,200 54,000 83,600 24,000 460 4,000 15,000 3,500 839,660 839,660 400,000 82,000 200,000 5,900 17,600 8,900 1,600 54,000 80,000 24,000 3,600 460 4,000 15,000 3,500 37,060 815,000 815,000 37,060

191,100 5,900 19,200 216,200 Crestwood Golf Club, Inc. Income Statement For the Year Ended Dec 31, 20X1 Revenues Dues Revenue Green Fees Revenue Rent Revenue Total Revenues Expenses Utilities expense Salaries & wages expense Maintenance & repairs expense Bad debts expense Depreciation expense-Building Depreciation expense-Equipment Insurance expense Total Expenses Net Income 54,000 83,600 24,000 460 4,000 15,000 3,500 184,560 31,640 Statement of Retained Earnings For the Year Ended Dec 31, 20X1 Beginning R/E Net Income Less Dividends Ending R/E 82,000 31,640 113,640

Crestwood Golf Club, Inc. Balance Sheet As of Dec 31, 20X1 Assets Current Assets Cash Accounts Receivable Allowance for doubtful accounts Rent Receivable Prepaid Insurance Total Current Assets 15,000 13,000 (1,560) 11,440 1,600 5,500 33,540 Non-Current Assets Land 350,000 Building 120,000 Accumulated Depreciation-Building (42,400) 77,600 Equipment 150,000 Accumulated Depreciation-Equipment (85,000) 65,000 Total Non-Current Assets Total Assets 492,600 526,140 Liabilities & Owner's Equity Current Liabilities Salaries & wages payable Unearned Revenue Total Current Liabilities 3,600 8,900 12,500 Owner's Equity Common Stock Retained earnings Total Owner's Equity Total Liabilities & Owner's Equity 400,000 113,640 513,640 526,140