Rolling Hills Golf Inc. was organized on July 1, 2012. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here.

ROLLING HILLS GOLF INC. Trial Balance September 30, 2012
	Unadjusted		Adjusted
	Dr.	Cr.	Dr.	Cr.
Cash	$ 6,700		$ 6,700
Accounts Receivable	400		1,000
Prepaid Rent	1,800		900
Supplies	1,200		180
Equipment	15,000		15,000
Accumulated DepreciationEquipment				$ 350
Notes Payable		$ 5,000		5,000
Accounts Payable		1,070		1,070
Salaries and Wages Payable				600
Interest Payable				50
Unearned Rent Revenue		1,000		800
Common Stock		14,000		14,000
Retained Earnings		0		0
Dividends	600		600
Service Revenue		14,100		14,700
Rent Revenue		700		900
Salaries and Wages Expense	8,800		9,400
Rent Expense	900		1,800
Depreciation Expense			350
Supplies Expense			1,020
Utilities Expense	470		470
Interest Expense			50
	$35,870	$35,870	$37,470	$37,470

Instructions

(a) Journalize the adjusting entries that were made.

(b) Prepare an income statement and a retained earnings statement for the 3 months ending September 30 and a classified balance sheet at September 30.

(c) Identify which accounts should be closed on September 30.

(d) If the note bears interest at 12%, how many months has it been outstanding?