Question

First Landing Golf Club
Trial Balance
December 31, 2018
	Unadjusted
	Debit	Credit
Cash	15,000
Accounts Receivable - Members	13,000
Allowance for Doubtful Accounts		1,100
Rent Receivable	-
Prepaid Insurance	9,000
Shop Supplies	3,600
Land	350,000
Buildings	120,000
Accumulated Depreciation - Buildings		40,000
Equipment	150,000
Accumulated Depreciation - Equipment		70,000
Interest Payable
Salaries and Wages Payable		-
Unearned Dues		-
Note Payable		100,000
Common Stock		300,000
Retained Earnings		82,000
Dues Revenue		200,000
Green Fees Revenue		7,900
Rent Revenue		17,600
Bad Debt Expense
Depreciation Expense - Buildings
Depreciation Expense - Equipment
Insurance Expense
Interest Expense
Salaries and Wages Expense	80,000
Shop Supplies Expense	-
Utilities Expenses	54,000
Maintenance and Repairs Expense	24,000
Income Summary
TOTALS	818,600	818,600

Presented below is the trial balance of First Landing Golf Club as of December 31, 2018. The books are closed annually on December 31.

The following information is available for First Landing Golf Club at December 31.

Prepare adjusting journal entries for First Landing Golf Club based on the trial balance and the following information.

• The buildings have an estimated life of 30 years with no salvage value (straight-line method.)
• The equipment is depreciated over ten years using the straight-line method.
• Insurance expired during the year totaled $3,500.
• The rent revenue represents the amount received for 11 months for dining facilities. The December rent has not yet been received.
• It is estimated that 12% of the accounts receivable will be uncollectible.
• Employees had earned $3,600, by December 31, for which they had not been paid.
• Dues received in advance from members $8,900 were recorded as Dues Revenue.
• The note payable of $100,000 was issued on April 1, 2018, with interest of 5% and is due April 1, 2019.
• Shop supplies remaining at December 31 were $700.

Requirements:

Using Excel, setup a worksheet for First Landing Golf Club with columns for the unadjusted trial balance, adjusting journal entries, adjusted trial balance, closing entries, and post-closing trial balance. (See Figure 1)

Transfer unadjusted balances to the worksheet, use formulas to ensure columns balance across worksheet. (see Figure 1)

Prepare adjusting journal entries using attached general journal and then post to worksheet.

Using formulas, complete the adjusted trial balance columns. (See Figures 2 and 3 as a guide for creating formulas. Note that each account should only have one formula associated with it depending on its normal balance.)

Prepare closing entries and post to the worksheet. (Net income = $26,990)

Complete worksheet by preparing post-closing trial balance. Use formulas! (NOTE: formulas from adjusted columns can be copied to the post-closing trial balance column.)

Figure 1

Sample formula:

=SUM(B3:B33)

Sample formula:

=SUM(B3:B33)

Figure 2

Figure 3

Answer 1