Question

Question 4 Salt Creek Golf Inc. was organized on July 1, 2017. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here. SALT CREEK GOLF INC. Trial Balance September 30, 2017 Unadjusted Adjusted Dr. Cr. Dr. cr $ 6,480 $6,480 Cash 490 1,350 Accounts Receivable 1,200 370 Supplies 1,780 390 Prepaid Rent 16,500 16.500 Equipment 330 Accumulated Depreciation-Equipment 5,500 5,500 Notes Payable 1,900 Accounts Payable 1,900 Salaries and Wages Payable 620 Interest Payable 55 1,330 660 Unearned Rent Revenue 13,500 13,500 Common Stock Retained Earnings 0 400 400 Dividends 18,600 19,460 Service Revenue 1,010 1.680 Rent Revenue 8,790 Salaries and Wages Expense 9,410 840 1,730 Rent Expense 330 De Expense 830 Supplies Expense 5,360 5,360 Utilities Expense 55 Interest Expense $41,840 $41,840 $43.705 $43,705 Journalize the adjusting entries that were made. (If no entry is required, select "No Entry" for the account titles and enter0 for the amounts. Credit account titles are automatically Indented when the amount is entered. Do not indent manually.) entry is raquirad, salect "No Entry" for the account tities and enter O for the amounts. Crodit account tities are automatically indented whon the amount Jaurnalize the adjusting entrias that were made. (Ifr onterad. Do not indent manually.) Account Tities and Explanation Debit Credit (To rocord service rovonue eamad) (To record rent expersex (To record suooles usedh (To record monthly depredation) (To record interest on notes payable (To recnrd unoarred rent revenue camed: (To record accrued salaries) Prepare an income statement for the 3 manths ending September 30 SALT CREEK GOLF INC. Income Statement : : Prepere a reteined eernings statement for the 3 months ending September 30. (List items that in crease retained earnings first.) SALT CREEK GOLF INC. Retained Eamings Statement order of liquidity.) Prepare a classified balance sheet at September 30. (List current assets. SALT CREEK GOLF INC. Balanca Sheet Assets Liabilitios and Stockholders' Equity : Identify whichn accounts should closed on September 30. Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Salaries and wages Payable Interest Payable Unearned Rent Revenue Common Stock Retained Earnings Dividends Service Revenue Rent Revenue Salarles and Wages Expenser Rent Expense Deoreciation Expense Supplies Expense Utilities Expense Interest Expense If the note bears interest et 12 % , how many months has it been outsternding? monthis boan autstanding for The note h

Answer 1

1) Adjusting Entries (Amounts in $)

S No.	Accounts Title and Explanation	Debit	Credit
1	Accounts Receivable	860
	Service Revenue		860
	(To record the Service revenue earned)
2.	Rent Expense	890
	Prepaid Rent		890
	(To record the rent Expense)
3.	Supplies Expense	830
	Supplies		830
	(To Record Supplies used)
4.	Depreciation	330
	Accumulated Deprecaition- Equipment		330
	(To Record monthly Depreciation)
5.	Interest Expense	55
	Interest Payable		55
	(To record the interest paid on notes payable)
6.	Unearned Rent Revenue	670
	Rent Revenue		670
	(To record the unearned revenue earned)
7.	Salaries and Wages Expense	620
	Salaries and Wages Payable		620
	(To record Accrued Salaries)

2) Income Statement (Amounts in $)

Salt Creek Golf Inc. Income Statement For the quarter ended Sept 30,2017
Revenue:
Service Revenue	19,460
Rent Revenue	1,680
Total Revenue (a)		21,140
Expenses:
Salaries and Wages Expense	9,410
Supplies Expense	830
Rent Expense	1,730
Utilities Expense	5,360
Depreciation Expense	330
Interest Expense	55
Total Expenses (b)		17,715
Net Income (a-b)		3,425

3) Retained Earning Statement (Amounts in $)

Salt Creek Golf Inc. Retained Earnings Statement For the quarter ended Sept 30,2017
Opening Balance of Retained Earnings	0
Add: Net Income	3,425
	3,425
Less : Dividend Paid	400
Ending Balance of Retained Earnings	3,025

4) Balance Sheet (Amounts in $)

Salt Creek Golf Inc. Balance Sheet as at Sept 30,2017
Assets
Current Assets
Cash	6,480
Accounts Receivables	1,350
Supplies	370
Prepaid Rent	890
Total Current Assets		9,090
Non- Current Assets
Equipment	16,500
Less : Accumulated Depreciation	330	16,170
Total Assets		25,260
Liabilities and Stockholders' Equity
Liabilities
Notes Payable	5,500
Accounts Payable	1,900
Salaries and Wages Payable	620
Interest Payable	55
Unearned Rent Revenue	660
Total Liabilities		8,735
Stockholders' Equity
Common Stock	13,500
Add : Retained Earnings	3,025
Total Stockholders' Equity		16,525
Total Liabilities and Stockholders' Equity		25,260