1) Provided on the next page is the trial balance of the RoyalCrest Golf Club Inc. as of December 31, 2019 They prepare adjusting entries and close their books Derber 31 Create accounts for general ledger accounts for each account listed in the trial balance, and the balances from the trial balance into your T-accounts for general ledger accounts and allowa few lines per account (FYL I recommend using T-accounts due to their simplicity, but the choice is yours) in order to save paper, you can place multiple T-accounts for ledger accounts on a page. For ledger accounts you can use the standard pencallader count format as illustrated on page 3-11 pll of Ch 3) or the account format illustrated on page 3-13 through 3-15 (and elsewhere) in Ch 3. Note that you must create ONE and only one) T-account (or general ledger account for each and accountie, do not create more than one Cash-cut more than one Retained Earnings T-account, etc. You will use the same T-accounts for posting a r transactional entries, adjusting cities, and closing ctrics. Also, to the extent possible, your T-act or peneral ledger accounts) so that Assets are together, Liabilities are becherche Picasso that the umption in this problem is that the regular (transactional entries have ALREADY been recorded and posted to the accounts for ral ledger), and the trial balance below reflects that fact. Therefore you do not have to record the original journal entries that resulted in the balances shown in the trial balance and in fact, there is no way that you would be able to figure out what those journal entries were just by looking at the trial balance, anyway) RoyalCrest Golf Trial Balance December 31, 2019 Credit 140.000 40.000 S 1000 48.000 200,000 900.000 300,000 Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Land Buildings Accumulated Depreciation of Buildings Equipment Accumulated Depreciation of Equipment Common Stock Retained Famings Dues Revenge Greens Fee Revenue Rent Revenue Advertising Expense Utilities Expense Salaries and Wages Expense Maintenance Expense 200,000 100.000 800,000 217.000 100 000 775.000 220,000 75.000 230.000 400.000 280,000 2613.000 2 613.000 2) Assume the regular transactional entries for the year have already been recorded leading to the account balances in the trial balance above. However, assume that the following transactions were overlooked and not previously recorded by the company during the year. These are transactional entries tasting entries) Record the mal entries for these transactions and the post them to your accounts for lediger) (Note: Use create account names that are not ready listed on the trial balance as needed) a) On February 1, the company paid cash to purchase supplies for $6,000. The company's policy is to record the purchase of supplies in an expense account at the time of purchase. b) On September 1, an additional building was purchased for $400,000 and additional equipment was purchased for $100,000. The company made a 20% down payment of the total purchase price, and signed al-year, 6% note payable for the remaining balance. Makeone compound entry c) On December 1, dividends of $15,000 were declared. (Note: Payment of the dividends will be made at a later date the following year. Hint: Be precise with the account name that is credited) 3) Record the adjusting journal entries listed below (see letters a-j') and then post those adjusting entries to T-accounts (or the ledger). Create new accounts, as needed. (Again, the company prepares adjusting entries at year-end only.) Be sure to SHOW YOUR CALCULATIONS for each adjusting entry that requires a calculation (ie, any adiasting entry for which you add. subtract, multiplyer diside numbers) There will be a deduction for each calculation that is missing. Those calculations can appear beneath or next to the entry or on a separate page. (Note: Adjusting entries should always be made in journal form first, and then, only after the joumal entries have been prepared, should they be posted to T-accounts (ledger accounts). When your posting is complete, be sure to show ending balances in each T-account (ledger account) a) The amount for prepaid insurance relates to a payment for two years of insurance coverage that was paid for on August 1st of the current year. The insurance coverage began on that date. b) It is estimated that 15% of the accounts receivable will be uncollectible. c) The rent revenue represents the amount received for 11 months for dining facilities. The same monthly amount is owed from customers for December, but that rent has not yet been received (Note: Be specific descriptive in the account name for the account debited in this entry.) d) The company paid $75,000 in October for several months of television and radio ads and recorded that amount as Advertising Expense at that time. As of December 31". S16,000 of those ads have yet to run c) of the S300,000 of Dues Revenue on the trial balance, $40,000 of that amount is considered to be received in advance (ie, services have not been performed for that portion, yet). 1) Property taxes incurred but not yet paid amount to $25,000. (Be specific in both account names here.) g) of the supplies purchased in 2a) above, S2,000 worth were unused as of December 31 h) The building referred to in 2b) above has an estimated useful life of 30 years and an estimated salvage value of $40,000. Use the straight-line method to record depreciation for 2019. (Note: Assume for simplicity that depreciation was already recorded for all other buildings: you only have to record depreciation for this new building.) i) The equipment referred to in 2b) above has an estimated salvage value of $10,000 and is depreciated at a rate of 10% per year. Record depreciation for 2019. (Note: Assume depreciation was already recorded for all other equipment; you only have to record depreciation for this new equipment.) 1) Record the accrued interest on the note from the September Ist transaction from 2b) above. 4) Using your updated balances in your T-accounts (or ledger) prepare the year-end income statement, statement of retained earnings, and balance sheet for 2019. Be sure to use proper form in preparing your financial statements, including proper headings and dating of the financials Page 4-10 (Single-Step Income Statement), p. 3-36 (Statement of Retained Earnings), and p. 3-37 (Balance Sheet) provide good examples to follow for this requirement (but obviously, you will have some different account names than the examples provided in the text). For your balance sheet, be sure to use your updated retained earnings balance from your statement of retained earnings since you have not prepared closing entries, yet. For your income statement, be sure to list each revenue and expense account, but do not worry about computing income tax expense. 5) Prepare closing entries (using compound entries where appropriate) and post them to your T-accounts (or ledger). Put these oumal entries on a separate page from your adjusting journal entries and label them "Closing Entries. (When posting, be sure to create a T-account or ledger account for Income Summary.) 6) Place your name at the top right corner of every page and make sure that each part is clearly and precisely identified. Your submission should be neatly prepared and free of spelling mistakes, and please note that points can be deducted for unprofessional / non-neat work and/or for multiple spelling mistakes. Arrange all your work in the following order (and please note that points will be deducted in items are not submitted in this order): 1) The three additional regular transactional entries. 2) Adjusting entries, 3) Income statement, 4) Statement of retained carings. 5) Balance sheet, 6) Closing entries, and 7) T-accounts or general ledger accounts. [Note: You can combine more than one financial statement on one page, if you wish --- assuming they'fit' on one page and it is clearly readable and not too small.) Do not use a report cover, simply staple once in the upper left hand corner. 1) Provided on the next page is the trial balance of the RoyalCrest Golf Club Inc. as of December 31, 2019 They prepare adjusting entries and close their books Derber 31 Create accounts for general ledger accounts for each account listed in the trial balance, and the balances from the trial balance into your T-accounts for general ledger accounts and allowa few lines per account (FYL I recommend using T-accounts due to their simplicity, but the choice is yours) in order to save paper, you can place multiple T-accounts for ledger accounts on a page. For ledger accounts you can use the standard pencallader count format as illustrated on page 3-11 pll of Ch 3) or the account format illustrated on page 3-13 through 3-15 (and elsewhere) in Ch 3. Note that you must create ONE and only one) T-account (or general ledger account for each and accountie, do not create more than one Cash-cut more than one Retained Earnings T-account, etc. You will use the same T-accounts for posting a r transactional entries, adjusting cities, and closing ctrics. Also, to the extent possible, your T-act or peneral ledger accounts) so that Assets are together, Liabilities are becherche Picasso that the umption in this problem is that the regular (transactional entries have ALREADY been recorded and posted to the accounts for ral ledger), and the trial balance below reflects that fact. Therefore you do not have to record the original journal entries that resulted in the balances shown in the trial balance and in fact, there is no way that you would be able to figure out what those journal entries were just by looking at the trial balance, anyway) RoyalCrest Golf Trial Balance December 31, 2019 Credit 140.000 40.000 S 1000 48.000 200,000 900.000 300,000 Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Land Buildings Accumulated Depreciation of Buildings Equipment Accumulated Depreciation of Equipment Common Stock Retained Famings Dues Revenge Greens Fee Revenue Rent Revenue Advertising Expense Utilities Expense Salaries and Wages Expense Maintenance Expense 200,000 100.000 800,000 217.000 100 000 775.000 220,000 75.000 230.000 400.000 280,000 2613.000 2 613.000 2) Assume the regular transactional entries for the year have already been recorded leading to the account balances in the trial balance above. However, assume that the following transactions were overlooked and not previously recorded by the company during the year. These are transactional entries tasting entries) Record the mal entries for these transactions and the post them to your accounts for lediger) (Note: Use create account names that are not ready listed on the trial balance as needed) a) On February 1, the company paid cash to purchase supplies for $6,000. The company's policy is to record the purchase of supplies in an expense account at the time of purchase. b) On September 1, an additional building was purchased for $400,000 and additional equipment was purchased for $100,000. The company made a 20% down payment of the total purchase price, and signed al-year, 6% note payable for the remaining balance. Makeone compound entry c) On December 1, dividends of $15,000 were declared. (Note: Payment of the dividends will be made at a later date the following year. Hint: Be precise with the account name that is credited) 3) Record the adjusting journal entries listed below (see letters a-j') and then post those adjusting entries to T-accounts (or the ledger). Create new accounts, as needed. (Again, the company prepares adjusting entries at year-end only.) Be sure to SHOW YOUR CALCULATIONS for each adjusting entry that requires a calculation (ie, any adiasting entry for which you add. subtract, multiplyer diside numbers) There will be a deduction for each calculation that is missing. Those calculations can appear beneath or next to the entry or on a separate page. (Note: Adjusting entries should always be made in journal form first, and then, only after the joumal entries have been prepared, should they be posted to T-accounts (ledger accounts). When your posting is complete, be sure to show ending balances in each T-account (ledger account) a) The amount for prepaid insurance relates to a payment for two years of insurance coverage that was paid for on August 1st of the current year. The insurance coverage began on that date. b) It is estimated that 15% of the accounts receivable will be uncollectible. c) The rent revenue represents the amount received for 11 months for dining facilities. The same monthly amount is owed from customers for December, but that rent has not yet been received (Note: Be specific descriptive in the account name for the account debited in this entry.) d) The company paid $75,000 in October for several months of television and radio ads and recorded that amount as Advertising Expense at that time. As of December 31". S16,000 of those ads have yet to run c) of the S300,000 of Dues Revenue on the trial balance, $40,000 of that amount is considered to be received in advance (ie, services have not been performed for that portion, yet). 1) Property taxes incurred but not yet paid amount to $25,000. (Be specific in both account names here.) g) of the supplies purchased in 2a) above, S2,000 worth were unused as of December 31 h) The building referred to in 2b) above has an estimated useful life of 30 years and an estimated salvage value of $40,000. Use the straight-line method to record depreciation for 2019. (Note: Assume for simplicity that depreciation was already recorded for all other buildings: you only have to record depreciation for this new building.) i) The equipment referred to in 2b) above has an estimated salvage value of $10,000 and is depreciated at a rate of 10% per year. Record depreciation for 2019. (Note: Assume depreciation was already recorded for all other equipment; you only have to record depreciation for this new equipment.) 1) Record the accrued interest on the note from the September Ist transaction from 2b) above. 4) Using your updated balances in your T-accounts (or ledger) prepare the year-end income statement, statement of retained earnings, and balance sheet for 2019. Be sure to use proper form in preparing your financial statements, including proper headings and dating of the financials Page 4-10 (Single-Step Income Statement), p. 3-36 (Statement of Retained Earnings), and p. 3-37 (Balance Sheet) provide good examples to follow for this requirement (but obviously, you will have some different account names than the examples provided in the text). For your balance sheet, be sure to use your updated retained earnings balance from your statement of retained earnings since you have not prepared closing entries, yet. For your income statement, be sure to list each revenue and expense account, but do not worry about computing income tax expense. 5) Prepare closing entries (using compound entries where appropriate) and post them to your T-accounts (or ledger). Put these oumal entries on a separate page from your adjusting journal entries and label them "Closing Entries. (When posting, be sure to create a T-account or ledger account for Income Summary.) 6) Place your name at the top right corner of every page and make sure that each part is clearly and precisely identified. Your submission should be neatly prepared and free of spelling mistakes, and please note that points can be deducted for unprofessional / non-neat work and/or for multiple spelling mistakes. Arrange all your work in the following order (and please note that points will be deducted in items are not submitted in this order): 1) The three additional regular transactional entries. 2) Adjusting entries, 3) Income statement, 4) Statement of retained carings. 5) Balance sheet, 6) Closing entries, and 7) T-accounts or general ledger accounts. [Note: You can combine more than one financial statement on one page, if you wish --- assuming they'fit' on one page and it is clearly readable and not too small.) Do not use a report cover, simply staple once in the upper left hand corner