The Highland Community Center ("HCC") recently completed its first year of operations. The Center provides space to local groups for various purposes: community theater rehearsals, choral group rehearsals, band and orchestra rehearsals, dance classes, play readings, book group meetings, lectures, neighborhood group meetings, etc. The HCC rented temporary space in a local school at a monthly cost of: $ 1,500 During 20x2 the HCC plans to purchase its own building. The post-closing trial balance for the Highland Community Center as of December 31, 20x1 appears below: Highland Community Center Post-closing Trial Balance December 31, 20x1 25,870 21 4,200 2,470 570 415 18,000 2,200 2,650 Cash Interest Receivable Notes Receivable "1" Prepaid Insurance Community Center supplies Office supplies Theater equipment (sound and lighting) Accumulated depreciation - theater equipment Office Furniture Accumulated depreciation - Office furniture Computers Accumulated depreciation - computers Accounts payable Unearned short-term rental revenue Unearned long-term rental revenue Notes payable "A" Discount on notes payable "A" Common Stock (shares outstanding) Retained Earnings 133 2,340 679 1,652 5,200 10,900 1,900 1,800 18,000 15,954 TOTAL $ 56,618 $ 56,618 Company policies: No reversing entries are used. All numbers are rounded to the nearest dollar. The straight-line method of depreciation is used for all fixed assets. All depreciation is calculated to the nearest month. Rental revenue accounts are initially credited when cash is received for all rentals of space. At the end of the year, adjustments are made for amounts that are still unearned. The Center prepares adjusting entries and financial statements once a year, on December 31st. po 1 Specific transactions during 20x2: $ 480,000 1) On May 1, 20x2, the HOC purchased a vacant building which had been used for a short period of time as a dance studio and small performance space. Total cost Cost allocation: percentare Land 12% Building 65% Heating/Air conditioning equipment 18% Old theater equipment Terms of purchase: A cash down payment was paid on May 1, 20x2: A 30-year, 5% mortgage was arranged for the remaining amount: $ 38,400 $441,600 DEPRECIATION was determined as follows: BUILDING Estimated life (in number of years) (Note: Depreciation will begin as of July 1, 20x2.after renovation) The residual value (as a percentage of original cost) is estimated at: HEATING AND A/C EQUIPMENT: Estimated life (in number of years - Depreciation to begin 5/1/x2) The residual value (as a percentage of original cost) is estimated at: OLD THEATER EQUIPMENT The old theater equipment is going to be sold and replaced and is therefore, not being depreciated 2) A two year fire insurance policy was purchased on May 1, 20x2 for: $ 8.520 3) Renovation of the building began immediately after the purchase date. The renovation took two months to complete and the building was ready for use as of July 1, 20x2. The renovation cost will be capitalized and added to the cost of the building. The depreciation on the building will begin on July 1, 20x2, the date the building was placed into use. See note 1 above for depreciation policy related to the building) The renovation cost was fully financed through the sale of no-par common stock Number of shares issued: Totalrenovation cost: $ 4,000 80,000 4) The existing (old) theater equipment (eg, amount purchased on February 1, 20x1 plus amount acquired on May 1, 20x2 with purchase of vacant building) was sold on July 1, 20x2. Terms of sale: A note receivable was accepted in exchange for the old theater equipment (referred to as "Note Receivable "2".) Maturity value of note: $ Term of note (in number of years): Stated annual interest rate: Annual interest rate considered appropriate in circumstances: 32,000 og 3 Specific transactions during 2012: (continued) 5) New theater equipment was purchased on July 1, 20x2. Terms of purchase: An initial cash payment plus a non-interest hearing note payable (referred to as "Note Payable "B") were issued in exchange for the new theater equipment. Initial cash payment $ 15,000 Maturity value of non-interest bearing note! $ 140,000 Term of note (in number of years) Annual interest rate considered appropriate in circumstances 8% DEPRECIATION of new theater equipment: Estimated life (in number of years) The residual value (as a percentage of original cost) is estimated at: 20% $ 30,000 6) New community center equipment was purchased on September 1, 20x2, for cash: DEPRECIATION of community center equipment: Estimated life (in number of years) The residual value (as a percentage of original cost) is estimated at: Cuts 7) Dividends were declared and paid on December 15, 20x2 Amount per share: $ 12% GO 0.35 8) A mortgage payment was made on December 31, 20x2 for the period May 1, 20x2 through December 31, 20x2. Total payment: Amount applied to principal leg., mortgage payable account) Amount applied to mortgage interest expense: $ $ $ 19,152 4,432 14,720 Summary transactions during 20x2: INote: These transactions occur throughout the year, but are presented as summaries so that only one entry will have to be prepared for each of the summary transactions. Some of these transactions will be recorded at December 31, 20x2.1 1) All accounts payable outstanding at the end of 20x1 were paid in January 20x2. 2) Rental Revenue Information: a) All short-term unearned rental revenue amounts as of 12/31/01 were earned in the first few months of 20x2. All long-term unearned rental revenue amounts as of 12/31/x1 were earned throughout 20x2. b) Cash received for long term rental revenues during 20x2 amounted to: $ 262,000 it was determined that the amount of long-term rentals unearned at 12/31/X2 was: $ 28,450 c) Cash received for short-term rental revenues during 20x2 amounted to: $ 82,400 It was determined that the amount of short-term rentals unearned at 12/31/X2 was: $ 3,750 d) Cash received for daily rental revenues during 20x2 amounted to: $ 48,600 pg 4 Specific transactions during 20x2: (continued) 5) New theater equipment was purchased on July 1, 20x2. Terms of purchase: An initial cash payment plus a non-interest bearing note payable (referred to as "Note Payable "B") were issued in exchange for the new theater equipment. Initial cash payment: $ 15,000 Maturity value of non-interest bearing note: $ 140,000 Term of note in number of years): Annual interest rate considered appropriate in circumstances: DEPRECIATION of new theater equipment: Estimated life (in number of years) The residual value (as a percentage of original cost) is estimated at: 20% 6) New community center equipment was purchased on September 1, 20x2, for cash: $ 30,000 DEPRECIATION of community center equipment: Estimated life in number of years) The residual value (as a percentage of original cost) is estimated at: Swarts 7) Dividends were declared and paid on December 15, 20x2. Amount per share: $ 12% 0.35 8) A mortgage payment was made on December 31, 20x2 for the period May 1, 20x2 through December 31, 20x2 Total payment: Amount applied to principal (e.g., mortgage payable account): Amount applied to mortgage interest expense: $ $ $ 19,152 4,432 14,720 Summary transactions during 20x2: (Note: These transactions occur throughout the year, but are presented as summaries so that only one entry will have to be prepared for each of the summary transactions. Some of these transactions will be recorded at December 31, 20x2.] 1) All accounts payable outstanding at the end of 20x1 were paid in January 20x2. 2) Rental Revenue Information: a) All short-term unearned rental revenue amounts as of 12/31/x1 were earned in the first few months of 20x2. All long-term unearned rental revenue amounts as of 12/31/x1 were earned throughout 20x2. b) Cash received for long-term rental revenues during 20x2 amounted to: $ 262,000 It was determined that the amount of long-term rentals unearned at 12/31/2 was: $ 28,450 c) Cash received for short-term rental revenues during 20x2 amounted to: $ 82,400 it was determined that the amount of short-term rentals uneared at 12/31/X2 was: $ 3,750 d) Cash received for daily rental revenues during 20x2 amounted to: $ 48,600 Pg 4 Summary transactions during 20x2: (continued) 3) It was determined that two clients who had arranged for long-term rentals were unable to make a few of their normal monthly payments during 20x2, but both had promised that full payments would be made during January 20x3. The amounts expected are: (The HCC will be recording these amounts as accounts receivable at 12/31/x2.) $ 5,500 4) Total operating expenses (e.g., salaries, utilities, maintenance, advertising, etc.) incurred for the year ended 12/31/x2 were: $ 147,380 paid in cash: amount still owed: $ 128,221 $ 19,159 5) All administrative expenses (e.g., salaries, rent, utilities, etc.) incurred for the year ended 12/31/2 were: 123,500 paid in cash: amount still owed: $ 108,680 $ 14,820 6) Additional community center supplies purchased during the year for cash: community center supplies on hand at year-end: $ $ 3,170 840 $ 7) Additional office supplies purchased during the year for cash: office supplies on hand at year-end: 1,950 630 $ 8) The percentage of estimated uncollectible accounts receivable at the end of December, 20x2 is determined to be: 15% pg 5 1) Prepare three amortization schedules (using EXCEL) for the outstanding notes as follows: Schedule A: For Note Payable "A" Schedule B: For Note Receivable "2" Schedule C: For Note Payable "B" [Note: Be sure to submit schedules with cell formulas, as well.] The Highland Community Center ("HCC") recently completed its first year of operations. The Center provides space to local groups for various purposes: community theater rehearsals, choral group rehearsals, band and orchestra rehearsals, dance classes, play readings, book group meetings, lectures, neighborhood group meetings, etc. The HCC rented temporary space in a local school at a monthly cost of: $ 1,500 During 20x2 the HCC plans to purchase its own building. The post-closing trial balance for the Highland Community Center as of December 31, 20x1 appears below: Highland Community Center Post-closing Trial Balance December 31, 20x1 25,870 21 4,200 2,470 570 415 18,000 2,200 2,650 Cash Interest Receivable Notes Receivable "1" Prepaid Insurance Community Center supplies Office supplies Theater equipment (sound and lighting) Accumulated depreciation - theater equipment Office Furniture Accumulated depreciation - Office furniture Computers Accumulated depreciation - computers Accounts payable Unearned short-term rental revenue Unearned long-term rental revenue Notes payable "A" Discount on notes payable "A" Common Stock (shares outstanding) Retained Earnings 133 2,340 679 1,652 5,200 10,900 1,900 1,800 18,000 15,954 TOTAL $ 56,618 $ 56,618 Company policies: No reversing entries are used. All numbers are rounded to the nearest dollar. The straight-line method of depreciation is used for all fixed assets. All depreciation is calculated to the nearest month. Rental revenue accounts are initially credited when cash is received for all rentals of space. At the end of the year, adjustments are made for amounts that are still unearned. The Center prepares adjusting entries and financial statements once a year, on December 31st. po 1 Specific transactions during 20x2: $ 480,000 1) On May 1, 20x2, the HOC purchased a vacant building which had been used for a short period of time as a dance studio and small performance space. Total cost Cost allocation: percentare Land 12% Building 65% Heating/Air conditioning equipment 18% Old theater equipment Terms of purchase: A cash down payment was paid on May 1, 20x2: A 30-year, 5% mortgage was arranged for the remaining amount: $ 38,400 $441,600 DEPRECIATION was determined as follows: BUILDING Estimated life (in number of years) (Note: Depreciation will begin as of July 1, 20x2.after renovation) The residual value (as a percentage of original cost) is estimated at: HEATING AND A/C EQUIPMENT: Estimated life (in number of years - Depreciation to begin 5/1/x2) The residual value (as a percentage of original cost) is estimated at: OLD THEATER EQUIPMENT The old theater equipment is going to be sold and replaced and is therefore, not being depreciated 2) A two year fire insurance policy was purchased on May 1, 20x2 for: $ 8.520 3) Renovation of the building began immediately after the purchase date. The renovation took two months to complete and the building was ready for use as of July 1, 20x2. The renovation cost will be capitalized and added to the cost of the building. The depreciation on the building will begin on July 1, 20x2, the date the building was placed into use. See note 1 above for depreciation policy related to the building) The renovation cost was fully financed through the sale of no-par common stock Number of shares issued: Totalrenovation cost: $ 4,000 80,000 4) The existing (old) theater equipment (eg, amount purchased on February 1, 20x1 plus amount acquired on May 1, 20x2 with purchase of vacant building) was sold on July 1, 20x2. Terms of sale: A note receivable was accepted in exchange for the old theater equipment (referred to as "Note Receivable "2".) Maturity value of note: $ Term of note (in number of years): Stated annual interest rate: Annual interest rate considered appropriate in circumstances: 32,000 og 3 Specific transactions during 2012: (continued) 5) New theater equipment was purchased on July 1, 20x2. Terms of purchase: An initial cash payment plus a non-interest hearing note payable (referred to as "Note Payable "B") were issued in exchange for the new theater equipment. Initial cash payment $ 15,000 Maturity value of non-interest bearing note! $ 140,000 Term of note (in number of years) Annual interest rate considered appropriate in circumstances 8% DEPRECIATION of new theater equipment: Estimated life (in number of years) The residual value (as a percentage of original cost) is estimated at: 20% $ 30,000 6) New community center equipment was purchased on September 1, 20x2, for cash: DEPRECIATION of community center equipment: Estimated life (in number of years) The residual value (as a percentage of original cost) is estimated at: Cuts 7) Dividends were declared and paid on December 15, 20x2 Amount per share: $ 12% GO 0.35 8) A mortgage payment was made on December 31, 20x2 for the period May 1, 20x2 through December 31, 20x2. Total payment: Amount applied to principal leg., mortgage payable account) Amount applied to mortgage interest expense: $ $ $ 19,152 4,432 14,720 Summary transactions during 20x2: INote: These transactions occur throughout the year, but are presented as summaries so that only one entry will have to be prepared for each of the summary transactions. Some of these transactions will be recorded at December 31, 20x2.1 1) All accounts payable outstanding at the end of 20x1 were paid in January 20x2. 2) Rental Revenue Information: a) All short-term unearned rental revenue amounts as of 12/31/01 were earned in the first few months of 20x2. All long-term unearned rental revenue amounts as of 12/31/x1 were earned throughout 20x2. b) Cash received for long term rental revenues during 20x2 amounted to: $ 262,000 it was determined that the amount of long-term rentals unearned at 12/31/X2 was: $ 28,450 c) Cash received for short-term rental revenues during 20x2 amounted to: $ 82,400 It was determined that the amount of short-term rentals unearned at 12/31/X2 was: $ 3,750 d) Cash received for daily rental revenues during 20x2 amounted to: $ 48,600 pg 4 Specific transactions during 20x2: (continued) 5) New theater equipment was purchased on July 1, 20x2. Terms of purchase: An initial cash payment plus a non-interest bearing note payable (referred to as "Note Payable "B") were issued in exchange for the new theater equipment. Initial cash payment: $ 15,000 Maturity value of non-interest bearing note: $ 140,000 Term of note in number of years): Annual interest rate considered appropriate in circumstances: DEPRECIATION of new theater equipment: Estimated life (in number of years) The residual value (as a percentage of original cost) is estimated at: 20% 6) New community center equipment was purchased on September 1, 20x2, for cash: $ 30,000 DEPRECIATION of community center equipment: Estimated life in number of years) The residual value (as a percentage of original cost) is estimated at: Swarts 7) Dividends were declared and paid on December 15, 20x2. Amount per share: $ 12% 0.35 8) A mortgage payment was made on December 31, 20x2 for the period May 1, 20x2 through December 31, 20x2 Total payment: Amount applied to principal (e.g., mortgage payable account): Amount applied to mortgage interest expense: $ $ $ 19,152 4,432 14,720 Summary transactions during 20x2: (Note: These transactions occur throughout the year, but are presented as summaries so that only one entry will have to be prepared for each of the summary transactions. Some of these transactions will be recorded at December 31, 20x2.] 1) All accounts payable outstanding at the end of 20x1 were paid in January 20x2. 2) Rental Revenue Information: a) All short-term unearned rental revenue amounts as of 12/31/x1 were earned in the first few months of 20x2. All long-term unearned rental revenue amounts as of 12/31/x1 were earned throughout 20x2. b) Cash received for long-term rental revenues during 20x2 amounted to: $ 262,000 It was determined that the amount of long-term rentals unearned at 12/31/2 was: $ 28,450 c) Cash received for short-term rental revenues during 20x2 amounted to: $ 82,400 it was determined that the amount of short-term rentals uneared at 12/31/X2 was: $ 3,750 d) Cash received for daily rental revenues during 20x2 amounted to: $ 48,600 Pg 4 Summary transactions during 20x2: (continued) 3) It was determined that two clients who had arranged for long-term rentals were unable to make a few of their normal monthly payments during 20x2, but both had promised that full payments would be made during January 20x3. The amounts expected are: (The HCC will be recording these amounts as accounts receivable at 12/31/x2.) $ 5,500 4) Total operating expenses (e.g., salaries, utilities, maintenance, advertising, etc.) incurred for the year ended 12/31/x2 were: $ 147,380 paid in cash: amount still owed: $ 128,221 $ 19,159 5) All administrative expenses (e.g., salaries, rent, utilities, etc.) incurred for the year ended 12/31/2 were: 123,500 paid in cash: amount still owed: $ 108,680 $ 14,820 6) Additional community center supplies purchased during the year for cash: community center supplies on hand at year-end: $ $ 3,170 840 $ 7) Additional office supplies purchased during the year for cash: office supplies on hand at year-end: 1,950 630 $ 8) The percentage of estimated uncollectible accounts receivable at the end of December, 20x2 is determined to be: 15% pg 5 1) Prepare three amortization schedules (using EXCEL) for the outstanding notes as follows: Schedule A: For Note Payable "A" Schedule B: For Note Receivable "2" Schedule C: For Note Payable "B" [Note: Be sure to submit schedules with cell formulas, as well.]