P3-9 (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

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 DepreciationBuildings 38,400

Equipment 150,000

Accumulated DepreciationEquipment 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

Instructions Prepare a statement of retained earnings and prepare a balance sheet

(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.