PROBLEM 418 Preparing Adjusting Entries 1041.104-2.04 .10 4.04 .106.07 The Ororgia Oun Club de secours monthly and closes i CMS anually. Club members pay their annual dues in advance by January 4. The entire amount is initially credited to Unearned Membership Does At the end of each month. appropriate portion of this amount is credited to Membership Dues Earned out of the club normally pay their fees before being allowed to use the facilities. The amounts collected are credited to Ouest Free Revenue at the time of receipt. Certain guests however, are billed at the end of the month. The following information is available as a source for preparing adjusting entries December 31 1. Salaries earned by the club's employees that have not yet been recorded or paid amount to $13.600 2. The Georgia State Police wed the club's facilities for target practice on December 30 of the current year. Al December 31, the 1.200 owed by the state police for rent fees had not yet been recorded or billed. 3. Membership dues earned in December, for collections received at the beginning of the year, amount to $140.000 4 Depreciation of the furniture and fixtures in the clubhouse is based on an estimated life of eight year. These wenst had originally been purchased for $120,000. The straight-line method is used. (Note: The clubhouse building was constructed in 1956 and is fully depreciated SA 12-month bank loan in the amount of $60.000 had been obtained by the club on October 4 Interest is computed an annual rate of 8 percent. The entire 500.000 plus all of the interest accrued over the 12-month life of the loan. is due in full on September 30 of the upcoming year. The necessary adjusting entry was made on November 30 to record the first two months of acerved interest expense. However, ne adjustment has been made to record interest expense served in December 6. A one-year property ingrance policy had been purchased on April 30 The entire premium of $10,000 was initially recorded as Unexpired Insurance 7. In December, the club entered into an agreement to host the annual tournament of the Georgia Junior Rifle Association. The club expects to generate purt fees of $7.200 from this event & Unrecorded Income Taxes Expense accrued in December amounts to $12.000 This amount will not be paid until January 22 Instructions For each of the numbered paragraphs, prepare the necesty adjusting entry including an explanation. If no adjusting entry required, explain why . Four types of adjusting entries are described at the beginning of the chapter Uung these descriptions, dentify the Page 1 type of each adjusting entry prepared in parta c. Although the clubhouse building is fully deprecated, cellent plstical condition Explain how this can be PROBLEM 418 Preparing Adjusting Entries 1041.104-2.04 .10 4.04 .106.07 The Ororgia Oun Club de secours monthly and closes i CMS anually. Club members pay their annual dues in advance by January 4. The entire amount is initially credited to Unearned Membership Does At the end of each month. appropriate portion of this amount is credited to Membership Dues Earned out of the club normally pay their fees before being allowed to use the facilities. The amounts collected are credited to Ouest Free Revenue at the time of receipt. Certain guests however, are billed at the end of the month. The following information is available as a source for preparing adjusting entries December 31 1. Salaries earned by the club's employees that have not yet been recorded or paid amount to $13.600 2. The Georgia State Police wed the club's facilities for target practice on December 30 of the current year. Al December 31, the 1.200 owed by the state police for rent fees had not yet been recorded or billed. 3. Membership dues earned in December, for collections received at the beginning of the year, amount to $140.000 4 Depreciation of the furniture and fixtures in the clubhouse is based on an estimated life of eight year. These wenst had originally been purchased for $120,000. The straight-line method is used. (Note: The clubhouse building was constructed in 1956 and is fully depreciated SA 12-month bank loan in the amount of $60.000 had been obtained by the club on October 4 Interest is computed an annual rate of 8 percent. The entire 500.000 plus all of the interest accrued over the 12-month life of the loan. is due in full on September 30 of the upcoming year. The necessary adjusting entry was made on November 30 to record the first two months of acerved interest expense. However, ne adjustment has been made to record interest expense served in December 6. A one-year property ingrance policy had been purchased on April 30 The entire premium of $10,000 was initially recorded as Unexpired Insurance 7. In December, the club entered into an agreement to host the annual tournament of the Georgia Junior Rifle Association. The club expects to generate purt fees of $7.200 from this event & Unrecorded Income Taxes Expense accrued in December amounts to $12.000 This amount will not be paid until January 22 Instructions For each of the numbered paragraphs, prepare the necesty adjusting entry including an explanation. If no adjusting entry required, explain why . Four types of adjusting entries are described at the beginning of the chapter Uung these descriptions, dentify the Page 1 type of each adjusting entry prepared in parta c. Although the clubhouse building is fully deprecated, cellent plstical condition Explain how this can be