Prepare statement of retained earnings-income statement

Assignment Help Financial Accounting

Reference no: EM131219249

(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

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.

(d) Prepare an income statement.

e) Prepare statement of retained earnings.

f) Prepare a balance sheet

G) Prepare closing entries. Post these to the ledger accounts.

H) Prepare a post closing trail balance.

Reference no: EM131219249

Questions Cloud

Prepare adjusting journal entries at year end : Prepare adjusting journal entries at year end, December 31, 2014, for the Basil Herb Company using the following supplemental information. Unexpired insurance at 12/31/14 is $22,500. The equipment has a useful life of 15 years with 10,000 salvage val..

Prepare appropriate journal entry for transaction or event : Construction Forms Corporation buys securities to be available for sale when circumstances warrant, not to profit from short-term differences in price and not necessarily to hold debt securities to maturity. Prepare the appropriate journal entry for ..

What is motivating the managers decision : A company has bought an expensive machine to use in helping file data. However, the machine quickly became outdated. Because the machine was so expensive, the manager is reluctant to replace it, falling into a sunk cost fallacy. What is motivating th..

Journal entry to record tanner-unfs investment in the bonds : Tanner-UNF Corporation acquired as a long-term investment $350 million of 7.0% bonds, dated July 1, on July 1, 2016. Company management has the positive intent and ability to hold the bonds until maturity. Prepare the journal entry to record Tanner-..

Prepare statement of retained earnings-income statement : 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. Prepare an adjusted trial balance. Prepare an inc..

The information about the unnecessary time pressure : Audit standards require successor auditors to attempt to communicate with the predecessor before accepting an audit engagement. Audit standards require successor auditors to attempt communication with the predecessor auditors. What step did Rich Fort..

Prepare the journal entry record this transaction : On January 1, 2016, Williams Co. issued $30 million of 10% nonconvertible bonds at 104. The bonds are due on December 31, 2031. Each $1,000 bond was issued with 20 detachable stock warrants, each of which entitled the bondholder to purchase, for $60,..

What convergence and harmonization means to you : Describe in your own words what convergence and harmonization means to you? Do you think these formats would result in comparable financial statements that could be used globally?

Prepare an adjusted trial balance-income statement : Presented below is the trial balance of the Crestwood Golf Club, Inc. as of December 31. The books are closed annually on December 31. Prepare an adjusted trial balance. Prepare an income statement. Prepare statement of retained earnings. Prepare a b..

User Account

All Pages