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The BC Golf Club adjusts its accounts monthly and closes its accounts annually. Club members pay their annual dues in advance by January 4 The

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The BC Golf Club adjusts its accounts monthly and closes its accounts annually. Club members pay their annual dues in advance by January 4 The entire amount is initially credited to Uneamed Membership Dues. At the end of each month, an appropriate portion of this amount is credited to Membership Dues Eamed. Guests of the club normally pay their fees befory being allowed to use the facilities. The amounts collected are credited to Guest Fee 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 at December 31. a) Salaries earned by the club's employees that have not yet been recorded or paid amount to $13.600 b) The BC Health used the club's facilities for entertainment on December 30 of the current year. At December 31. the $3.200 owed by the BC health for et fees had not yet been recorded or billed. c) Membership dues canned in December, for collections received at the beginning of the year, amount to $140.000 d) Depreciation of the furniture and fixtures in the clubhouse is based on an estimated life of eight years. These items 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.) e) A 12 month bank loan in the amount of $60,000 had been obtained by the club on October 4. Interest is computed at an annual rate of 8 percent. The entire 560,000, 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 accrued interest expense. However, no adjustment has been made to record interest expense accrued in December A) A one-year property insurance policy had been purchased on April 30. The entire premium of $10,800 was initially recorded as Unexpired Insurance g) In December, the club entered into an agreement to host the annual tournament of the Be BC Association. The club expects to generate guest fees of $7.200 from this event. h) Unrecorded Income Taxes Expense accrued in December amounts to $12.600. This The BC Golf Club adjusts its accounts monthly and closes its accounts annually. Club members pay their annual dues in advance by January 4 The entire amount is initially credited to Uneamed Membership Dues. At the end of each month, an appropriate portion of this amount is credited to Membership Dues Eamed. Guests of the club normally pay their fees befory being allowed to use the facilities. The amounts collected are credited to Guest Fee 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 at December 31. a) Salaries earned by the club's employees that have not yet been recorded or paid amount to $13.600 b) The BC Health used the club's facilities for entertainment on December 30 of the current year. At December 31. the $3.200 owed by the BC health for et fees had not yet been recorded or billed. c) Membership dues canned in December, for collections received at the beginning of the year, amount to $140.000 d) Depreciation of the furniture and fixtures in the clubhouse is based on an estimated life of eight years. These items 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.) e) A 12 month bank loan in the amount of $60,000 had been obtained by the club on October 4. Interest is computed at an annual rate of 8 percent. The entire 560,000, 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 accrued interest expense. However, no adjustment has been made to record interest expense accrued in December A) A one-year property insurance policy had been purchased on April 30. The entire premium of $10,800 was initially recorded as Unexpired Insurance g) In December, the club entered into an agreement to host the annual tournament of the Be BC Association. The club expects to generate guest fees of $7.200 from this event. h) Unrecorded Income Taxes Expense accrued in December amounts to $12.600. This

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