Problem 3-9 Presented below is the trial balance of the Headland Golf Club, Inc. as of December 31. The books are closed annually on December 31. HEADLAND GOLF CLUB, INC. TRIAL BALANCE DECEMBER 31 Debit Credit Cash $19,860 Accounts Receivable 16,600 Allowance for Doubtful Accounts $1,200 Prepaid Insurance 8,900 Land 393,400 Buildings 150,000 Accumulated Depreciation-Buildings 48,000 Equipment 184,100 Accumulated Depreciation-Equipment 85,913 Common Stock 367,700 Retained Earnings 219,288 Dues Revenue 194,200 Green Fees Revenue 5,439 Rent Revenue 18,700 Utilities Expenses 58,630 Salaries and Wages Expense 80,600 Maintenance and Repairs Expense 28,350 $940,440 $940,440 Enter the balances in ledger accounts. Cash Accounts Receivable Allow. for Doubtful Accts. Land Buildings Accum. Depr.Buildings Equipment Prepaid Insurance Common Stock Retained Earnings Dues Revenue Green Fees Revenue Rent Revenue Utilities Expenses Salaries and Wages Expense Maintenance and Repairs Expense Accum. Depr.Equipment SHOW LIST OF ACCOUNTS From the trial balance and the information given below, prepare annual adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) (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 $3,160. (4) The rent revenue represents the amount received for 11 months for dining facilities. The December rent has not yet been received. (Use Rent Receivable account.) (5) It is estimated that 12% of the accounts receivable will be uncollectible. (6) Salaries and wages earned but not paid by December 31, $3,904. (7) Dues received in advance from members $9,608, were recorded as Dues Revenue. No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6. 7. SHOW LIST OF ACCOUNTS Post to the ledger accounts. (Post entries in the order as displayed in the part above.) Cash Bal. 19,860 Accounts Receivable Bal. 16,600 Allow. for Doubtful Accts. Bal. 1,200 Land Bal. 393,400 Buildings Bal. 150,000 Accum. Depr.Buildings Bal. 48,000 Rent Receivable Salaries and Wages Payable Equipment Bal. 184,100 Prepaid Insurance Bal. 8,900 Common Stock Bal. 367,700 Retained Earnings Bal. 219,288 Dues Revenue Bal. 194,200 Green Fees Revenue Bal. 5,439 Rent Revenue Bal. 18,700 Utilities Expenses Bal. 58,630 Bad Debt Expense Unearned Dues Revenue Salaries and Wages Expense Bal. 80,600 Maintenance and Repairs Expense Bal. 28,350 Depreciation Expense Accum. Depr.Equipment Bal. 85,913 Insurance Expense SHOW LIST OF ACCOUNTS Prepare an adjusted trial balance. HEADLAND GOLF CLUB, INC. Adjusted Trial Balance December 31, XXXX Debit Credit $ $ $ $ SHOW LIST OF ACCOUNTS Prepare closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit 1. (To close revenue accounts) 2. (To close expense accounts) 3. (To close net income / (loss)) SHOW LIST OF ACCOUNTS Post closing entries. Cash Bal. 19,860 Accounts Receivable Bal. 16,600 Allow. for Doubtful Accts. Bal. 1,200 Adj. 792 1,992 Land Bal. 393,400 Buildings Bal. 150,000 Accum. Depr.Buildings Bal. 48,000 Adj. 5,000 53,000 Rent Receivable Adj. 1,700 Salaries and Wages Payable Adj. 3,904 Equipment Bal. 184,100 Prepaid Insurance Bal. 8,900 Adj. 3,160 5,740 Common Stock Bal. 367,700 Retained Earnings Bal. 219,288 Dues Revenue Adj. 9,608 Bal. 194,200 Green Fees Revenue Bal. 5,439 Rent Revenue Bal. 18,700 Adj. 1,700 Utilities Expenses Bal. 58,630 Bad Debt Expense Adj. 792 Unearned Dues Revenue Adj. 9,608 Salaries and Wages Expense Bal. 80,600 Adj. 3,904 Maintenance and Repairs Expense Bal. 28,350 Depreciation Expense Adj. 23,410 Accum. Depr.Equipment Bal. 85,913 Adj. 18,410 104,323 Insurance Expense Adj. 3,160 Income Summary