Tequila Club Trial Balance December 31, 2021 Cash 108,000 Accounts receivable 58,000 Allowance for doubtful accounts 8,000 Land 350,000 Buildings 598,000 Accumulated depreciation-buildings 33,000 Equipment 250,000 Accumulated depreciation-equipment 70,000 Prepaid insurance 12,000 Common shares 870,000 Retained earnings 156,000 Sales revenue 408,000 Rent revenue 44,000 Utilities expense 74,000 Salaries and wages expense 90,000 1,589,000 1,589,000 Instructions: a. Enter the balances in ledger accounts. b. From the trial balance and the information below, prepare annual adjusting entries and post to the ledger accounts: i. ii. iii. iv. V. vi. vii. The buildings have an estimated life of 40 years with no residual value. (The company uses the straight-line method.) The equipment is depreciated at 10% of its year-end carrying value per year. Insurance expired during the year was $5,200. The rental revenue is the amount received for 11 months for dining facilities. The December rent of $5,000 has not yet been received. A Rent Receivable account is used. It is estimated that 20% of the accounts receivable will be uncollectible. Salaries and wages earned but not paid by December 31 amounted to $4000. Sales revenue included dues paid in advance by members and totalled $10000. c. Prepare closing entries and post to the ledger.