P39 L02345 Adjusting and Closing Presented below is the tria

P3-9 (L02,3,4,5) (Adjusting and Closing) Presented below is the trial balance of the Crestwood Golf Club, Inc. as of Decem- ber 31The books are closed annually on December 31 CRESTWOOD GOLF CLUB, INC TRIAL BALANCE DECEMBER 31 Debit Credit 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 15,000 13,000 1,100 9,000 350,000 120,000 38,400 150,000 70,000 400,000 82,000 200,000 5,900 17,600 Utilities Expenses Salaries and Wages Expense Maintenance and Repairs Expense 54,000 80,000 24,000 $815,000 $815,000

Solution

Step 1 : Firstly, Adjusting entries needs to be passed which is shown as follows:-

b) Adjusting Journal Entries (Amount in $)

Step 2 : The ledger accounts are prepared after step 1 which is shown as follows:-

Cash (Amount in $)

Accounts Receivable (Amount in $)

Allowance for Accounts Receivable (Amount in $)

  Prepaid Insurance (Amount in $)

  Land (Amount in $)

Buildings (Amount in $)

Accumulated Depreciation-Buildings (Amount in $)

Equipment (Amount in $)

Accumulated Depreciation-Equipment (Amount in $)

Common Stock (Amount in $)

Retained Earnings (Amount in $)

Dues Revenue (Amount in $)

Green Fees Revenue (Amount in $)

Rent Revenue (Amount in $)

Utilities Expense (Amount in $)

Maintenance & Repairs Expense (Amount in $)

Salaries and Wages Expense (Amount in $)

Depreciation Expense-Buildings (Amount in $)

Depreciation Expense-Equipment (Amount in $)

Bad Debt Expense (Amount in $)

Insurance Expense (Amount in $)

Rent Receivable (Amount in $)

Step 3 : Adjusted Trial Balance is shown as follows (Amount in $)

Crestwood Gold Club, Inc.

Adjusted Trial Balance as on December 31

S.No.	Account Titles	Debit	Credit
1)	Depreciation Expense-Buildings ($120,000/30 yrs)	4,000
	Accumulated Depreciation-Buildings		4,000
2)	Depreciation Expense-Equipment	15,000
	Accumulated Depreciation-Equipment (150,000*10%)		15,000
3)	Insurance Expense	3,500
	Prepaid Insurance		3,500
4)	Rent Receivable ($17,600/11 months)	1,600
	Rent Revenue		1,600
5)	Bad Debt Expense [($13,000*12%)-1,100]	460
	Allowance for Doubtful Accounts		460
6)	Salaries and wages Expense	3,600
	Salaries and wages Payable		3,600
7)	Dues Revenue	8,900
	Unearned Dues Revenue		8,900