Rolling Hills Golf Inc. was organized on July 1, 2014. Quarterly financial statements are prepared. The unadjusted trial balance and adjusted trial balance on September 30 are shown here.

Instructions
(a) Journalize the adjusting entries that were made.
(b) Prepare an income statement and a retained earnings statement for the 3 months ending September 30 and a classified balance sheet at September 30.
(c) Identify which accounts should be closed on September 30.
(d) If the note bears interest at 12%, how many months has it been outstanding?

Transcribed Image Text:

ROLLING HILLS GOLF INC. TRIAL BALANCE SEPTEMBER 30, 2014 Unadjusted Dr. $ 6,700 Adjusted Cr. Dr. Cr. $ 6,700 Cash Accounts Receivable 400 1,000 Prepaid Rent Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Salaries and Wages Payable Interest Payable 1,800 900 1,200 180 15,000 15,000 2$ 350 5,000 1,070 $ 5,000 1,070 600 50 Unearned Rent Revenue 1,000 14,000 800 Common Stock 14,000 Retained Earnings Dividends 600 600 Service Revenue 14,100 14,700 Rent Revenue 700 900 Salaries and Wages Expense Rent Expense Depreciation Expense Supplies Expense Utilities Expenses Interest Expense 8,800 9,400 1,800 900 350 1,020 470 470 50 $35,870 $35,870 $37,470 $37,470