Hw OB P3-9 (Adjusting and Closing) Presented below is the trial balance of the Crestwood Golf Club, Inc. as of DD 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 Prepaid Insurance 9,000 $ 1,100 Land 350,000 Buildings Accumulated Depreciation -- Buildings 120,000 Equipment 38,400 Accumulated Depreciation Equipment 150,000 Common Stock 70,000 Retained Earnings 400,000 Dues Revenue 82.000 Green Fees Revenue 200,000 Rent Revenue Utilities Expenses 5.900 Salaries and Wages Expense 17,600 Maintenance and repain Experte 54,000 80,000 24,000 $815.000 S815,000 Problems 140 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 (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 Decem ber 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. ( Prepare an adjusted trial balance. (d) Prepare closing entries and post. HW BD P36 (Adjusting Entries and Financial Statements) The following are the trial balance and the other infor mation related to Yorkis Perez, a consulting engineer Credit Cash $ 750 YORKIS PEREZ, CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2014 Debit $ 29,500 Accounts Receivable 49,600 Allowance for Doubtful Accounts Inventory 1,960 Prepaid Insurance 1.100 Equipment 25,000 Accumulated Depreciation Equipment Notes Payable Owner's Capital Service Revenue Rent Expense Salaries and Wages Expense Utilities Expenses Office Expense 1.080 6.250 7.200 35,010 100,000 9.750 30,500 720 $149.210 $149.210 Problems 147 1. Fees received in advance from clients $6,000 2 Services performed for clients that were not recorded by December 31, 54,900. 3. Bad debt expense for the year is $1430. 4. Insurance expired during the year $480. 5. Equipment is being depreciated at 10% per year. 6 Yorkis Perez gave the bank a 90-day, 10% note for $7.200 on December 1, 2014. 7. Rent of the building is $750 per month. The rent for 2014 has been paid, as has that for January 2015, & Office salaries and wages earned but unpaid December 31, 2014, 52,510. Instructions @) From the trial balance and other information given, prepare annual adjusting entries as of Decem- ber 31, 2014. (Omit explanations.) (b) Prepare an income statement for 2014, a statement of owner's equity, and a classified balance sheet Yorkis Perez withdrew $17,000 cash for personal use during the year. PROBLEMS P3-1 (Transactions, Financial Statements-Service Company) Listed below are the transactions of Yasunari Kawabata, D.D.S., for the month of September. Sept. 1 Kawabata begins practice as a dentist and invests $20,000 cash. 2 Purchases dental equipment on account from Groen Jacket Co. for $17.280. 4 Pays rent for office space, $680 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $942 8 Receives cash of $1,600 from patients for services performed. 10 Pays miscellaneous office expenses, $430, 14 Bills patients $5,820 for services performed 18 Pays Green Jacket Co. on account, $3,600 19 Withdraws $3,000 cash from the business for personal use. 20 Receives $980 from patients on account 25 Bilis patients $2,110 for services performed. 30 Pays the following expense in cash Salaries and wages $1,800, miscellaneous office expenses $86. 30 Dental supplies used during September $330. 144 Chapter 3 The Accounting Information System Instructions (a) Enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable Supplies, Equipment, Accumulated Depreciation Equipment Accounts Payable, Owner's Capital, Service Revenue, Rent Expense, Summary: Allow 10 lines for the Cash and Income Summary accounts, and 5 lines for each of the Office Expense, Salaries and Wages Expense, Supplies Expense, Depreciation Expense, and Income the method, and no salvage value. Do not use a drawing account. (b) Prepare a trial balance. Prepare an income statement, a statement of owner's equity, and an unclassified balance sheet (d) Close the ledger (e) Prepare a post-closing trial balance Arresy was founded in January