Below you will find a extended problem regarding post- closing trial pages 1,3,4,5,6. Post all the entries in the ledger accounts. Prepare And then just to try a balance income statement statement or retain earnings and balance sheet

ACC 2101 - Extra credit problem Page 5 Specific transactions during 20x2: (continued) 5) New theater equipment was purchased on July 1, 20x2. Terms of purchase: An initial cash payment plus a non-interest bearing note payable (referred to as "Note Payable "B") were issued in exchange for the new theater equipment. Initial cash payment: S 20,000 Maturity value of non-interest bearing note: 5 140,000 Term of note (in number of years): curved Crime 5 did 12/34/Annual interest rate considered appropriate in circumstances: 8% 17.102 DEPRECIATION of new theater equipment: Estimated life (in number of years ) 12 The residual value (as a percentage of original cost) is estimated at: 15% 6) New community center equipment was purchased on September 1, 20x2, for cash: 28,000 DEPRECIATION of community center equipment: supplies on hand at Estimated life (in number of years ) 8 The residual value (as a percentage of original cost) is estimated at: 10% 7) Dividends were declared and paid on December 15, 20x2. Amount per share: $ 0.75 8) A mortgage payment was made on December 31, 20x2 for the period May 1, 20x2 through December 31, 20x2 Total payment: $ 20,644 Amount applied to principal (e.g., mortgage payable account): 4,777 Amount applied to mortgage interest expense: 15,867 Summary transactions during 20x2: [Note: These transactions occur throughout the year, but are presented as summaries so that only one entry will have to be prepared for each of the summary transactions. Some of these transactions will be recorded at December 31, 20x2.] 1) All accounts payable outstanding at the end of 20x1 were paid in January 20x2. 2) Rental Revenue Information: a) All short-term unearned rental revenue amounts as of 12/31/x1 were earned in the first few months of 20x2. All long-term unearned rental revenue amounts as of 12/31/x1 were earned throughout 20x2. b) Cash received for long-term rental revenues during 20x2 amounted to: $ 292,000 It was determined that the amount of long-term rentals unearned at 12/31/x2 was: $ 28,650 c) Cash received for short-term rental revenues during 20x2 amounted to: $ 86,660 It was determined that the amount of short-term rentals unearned at 12/31/x2 was: 3,400 d) Cash received for daily rental revenues during 20x2 amounted to: 51,000ACC 2101 - Extra credit problem Page 4 Specific transactions during 20x2: 1) On May 1, 20x2, the HCC purchased a vacant building which had been used for a short period of time as a dance studio and small performance space. Total cost: $ 560,000 Cost allocation: percentage Land 18% 20,000 Building 65% Heating/Air conditioning equipment 12% Old theater equipment 5% Terms of purchase: A cash down payment was paid on May 1, 20x2: $ 84,000 A 30-year, 5% mortgage was arranged for the remaining amount: $ 476,000 ginal casty is estimated it. DEPRECIATION was determined as follows: BUILDING: Estimated life (in number of years ) 35 (Note: Depreciation will begin as of July 1, 20x2 - after renovation.) The residual value (as a percentage of original cost) is estimated at: 20% HEATING AND Estimated life (in number of years - Depreciation to begin 5/1/x2 ) 5 A/C EQUIPMENT: The residual value (as a percentage of original cost) is estimated at: 0% 0.7 OLD THEATER The old theater equipment is going to be sold and replaced and is, therefore, EQUIPMENT: not being depreciated. 2) A two-year fire insurance policy was purchased on May 1, 20x2 for: S 9,840 45,567 3) Renovation of the building began immediately after the purchase date. The renovation took two months to complete and the building was ready for use as of July 1, 20x2. [The renovation cost will be capitalized and added to the cost of the building. The depreciation on the building will begin on July 1, 20x2, the date the building was placed into use. See note 1 above for depreciation policy related to the building.] The renovation cost was fully financed through the sale of no-par common stock. Number of shares issued: 4,750 () All eccounts payable outstanding of the end of 201 Total renovation cost: $ 95,000 4) The existing (old) theater equipment (e.g., amount purchased on February 1, 20x1 plus amount acquired on May 1, 20x2 with purchase of vacant building) was sold on July 1, 20x2. Terms of sale: A note receivable was accepted in exchange for the old theater equipment (referred to as "Note Receivable "2".) Maturity value of note: to: $ 38,000 emined that the Term of note (in number of years): Stated annual interest rate: ned at 12/31/x2 was! 3 ed for not 2% Annual interest rate considered appropriate in circumstances: 6% revenue 20ACC 2101 - Extra credit problem Hudson Community Center Page 1 The Hudson Community Center ("HCC") recently completed its first year of operations. The Center provides space to local groups for various purposes: community theater rehearsals, choral group rehearsals, band and orchestra rehearsals, dance classes, play readings, book group meetings, monthly cost of: lectures, neighborhood group meetings, etc. The HCC rented temporary space in a local school at a $ 1,450 During 20x2 the HCC plans to purchase its own building. The post-closing trial balance for the Hudson Community Center as of December 31, 20x1 is presented below: Hudson Community Center Post-closing Trial Balance December 31, 20x1 Cash $ 22,360 Interest Receivable 21 Notes Receivable "1" 4,200 Prepaid Insurance 3, 770 Community Center supplies 815 Office supplies 390 Theater equipment (sound and lighting) 12,160 Accumulated depreciation - theater equipment S 2,090 Office Furniture 2,999 Accumulated depreciation - office furniture 120 Computers 2,880 Accumulated depreciation - computers 836 Accounts payable 1,989 Unearned short-term rental revenue 5,600 Unearned long-term rental revenue perse . the 10,850 Notes payable "A" 2,200 Discount on notes payable "A" 124 Common Stock (shares outstanding) 2,000 20,000 Retained Earnings 6,033 TOTAL 49,718 $ 49,718 Company policies: No reversing entries are used. All numbers are rounded to the nearest dollar. The straight-line method of depreciation is used for all fixed assets. All depreciation is calculated to the nearest month. Rental revenue accounts are initially credited when cash is received for all rentals of space. At the end of the year, adjustments are made for amounts that are still unearned. The Center prepares adjusting entries and financial statements once a year, on December 31st.ACC 2101 - Extra credit problem Page 3 Additional information regarding items on the 12/31/x1 post-closing trial balance: 1) A four-month note receivable (note receivable "1") was initiated on December 1, 20x1 for: $ 4,200 6% was the stated interest rate on the note and it was considered appropriate for this type of note. The full principal and interest is due on April 1, 20x2. 2) A three-year liability insurance policy was purchased on March 1, 20x1 for: 5,220 3) The theater equipment was acquired on February 1, 20x1 for a cash payment of: $ 12,160 The life of the theater equipment is estimated to be (number of years): The residual value (as a percentage of original cost) is estimated at: 25% follows: 4) The office furniture was acquired on January 1, 20x1. Terms of purchase were as date of first payment: 1/1/x1 Amount of first payment: S 550 Five additional payments due semi-annually, starting on 7/1/x1 (continuing with 1/1/x2, 7/1/x2, 1/1/x3 and 7/1/x3) were accepted as zero-interest bearing notes . The semi-annual payment is: $ 550 The appropriate annual interest rate in the circumstances was determined to be: 8% [The note payable described above is referred to as Note Payable "A".] The life of the office furniture is estimated to be (number of years): 20 The residual value (as a percentage of original cost) is estimated at: 20% 5) Computers were purchased on February 1, 20x1 for a cash payment of: S 2,880 The life of the computers is estimated to be (number of years): The residual value (as a percentage of original cost) is estimated at: 5% ation took two 6) The HCC rents space in several different ways. Certain groups rent space on a regular basis (e.g., twice a week for six months [long-term rentals]); certain groups rent space for a shorter duration (e.g., once a week for one month [short-term rentals]); and some rent space as needed [daily rentals]. Adjustments were made on 12/31/x1 to reflect the amounts of unearned rental revenues. The balances appear on the post-closing trial balance above. quon cost A note rece to as a number of tommy ingown. tances:ACC 2101 - Extra credit problem Page 6 Summary transactions during 20x2: (continued) 3) It was determined that two clients who had arranged for long-term rentals were unable to make a few of their normal monthly payments during 20x2, but both had promised that full payments would be made during January 20x3. The amounts expected are: $ 7,400 (The HCC will be recording these amounts as accounts receivable at 12/31/x2.) 4) Total operating expenses (e.g., salaries, utilities, maintenance, advertising, etc.) incurred for the year ended 12/31/x2 were: $ 155,470 paid in cash: $ 138,368 amount still owed: $ 17,102 12/31/x2 were: 5) All administrative expenses (e.g., salaries, rent, utilities, etc.) incurred for the year ended $ 135,630 paid in cash: $ 119,354 Sharing the year: amount still owed: S 16,276 6) Additional community center supplies purchased during the year for cash: 3,820 community center supplies on hand at year-end: ur 710 7) Additional office supplies purchased during the year for cash: 1,650 5) Prepare, office supplies on hand at year-end: ended 13/33/2. leave. 520 8) The percentage of estimated uncollectible accounts receivable at the end of December, 20x2 is determined to be: 12% BE SURE TO CLEARLY PRESENT AND CLEARM LASSI ALL CALCULATIONS WHEREPROPRIATE