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Use the following TRANSACTIONS AND ADDITIONAL INFORMATION to complete the General Journal, Ledger, Worksheet and Financial Statements for the first month of operations for The

Use the following TRANSACTIONS AND ADDITIONAL INFORMATION to complete the General Journal, Ledger, Worksheet and Financial Statements for the first month of operations for The Golf Club. Use the Perpetual Inventory method as discussed in class for all sales of merchandise.

TRANSACTION #

DATE

TRANSACTION DESCRIPTION

1

Sept 1

At the beginning of September, three brothers organized The Golf Club by contributing $60,000 each to begin the new business in exchange for shares of stock.

2

Sept 2

Signed a one-year lease on an existing golf club and golf course for The Golf Club and made a $45,000 advance payment for the first three months rent.

3

Sept 2

The Golf Club purchased the following fixed assets, paying 20% down and giving a two-year, 6% APR, note for the balance. Principle and interest are due at maturity.

Furniture..$18,300

Fixtures$5,100

Equipment...$79,200

$102,600

4

Sept 3

Purchased a 6-month insurance policy on The Golf Club and its contents and paid the premium of $3,600 in advance.

5

Sept 3

Purchased office supplies for $675 on an open account from Kellis Office Supplies. The Golf Club has 30 days to pay for the supplies.

6

Sept 3

Purchased on account a total of 100 shirts with an embroidered Golf Club logo from C & C Creations at a price of $12 per shirt. These shirts are available for resale to customers.

7

Sept 3

Purchased concessions for $4,200 from Delta Distributing, Inc. These concessions consist of energy drinks, chips, crackers, nuts etc., and are available for resale to customers. The Golf Club paid 30% down and put the balance on account.

8

Sept 3

Sold 75, twelve-month memberships to The Golf Club for $2,250 each. All membership dues were collected in cash.

9

Sept 3

Purchased a 6-month maintenance contract with Larrys Landscaping to provide grounds maintenance. Paid $7,200 in advance for this service.

10

Sept 5

Provided 50 hours of golf lessons to members. Fees are charged at a rate of $60/hour. Of these fees, $650 was collected in cash and the balance was billed to individual members accounts.

11

Sept 6

Received a bill for $400 from The Golf Clubs attorney for legal services rendered.

12

Sept 8

Sold 44 shirts to a corporate member, Allen & Associates for $21.50 each. Collected $430 in cash and the balance is owed to The Golf Club on account.

13

Sept 14

Purchased an additional $250 in office supplies on open account from Kellis Office Supplies.

14

Sept 15

Paid wages and salaries of $3,100 to Golf Club employees.

15

Sept 15

Sold 25, twelve-month memberships to the club for $2,250 each. Collected the dues in cash.

16

Sept 15

The concessions stand reported sales of merchandise for $5,200 for the first half of the month. The concessions that were sold had an original cost of $2,800. All of these transactions were billed directly to each members account.

17

Sept 16

Purchased additional concessions for $1,800 from Delta Distributing on open account.

18

Sept 18

Paid the total amounts due to C&C Creations, the Golf Clubs attorney and Kellis Office Supplies.

19

Sept 19

Sold 36 shirts to individual customers for $30 each. Collected 30% in cash, the balance is owed to the Golf Club on account.

20

Sept 22

The Golf Club declared and paid a dividend of $1,000 to each shareholder.

21

Sept 26

Collected the balance of what was owed on account from Allen & Associates.

22

Sept 28

Received a utility bill that totaled $980 for the month. It is due Oct. 14.

23

Sept 30

Fees for golf lessons for the last half of September (billed to members accounts) = $4,680

24

Sept 30

Cash sales of shirts (8 @ $30 each) = $240

25

Sept 30

Sales for concessions during the last half of September (20% collected in cash) = $4,800

Cost of concessions sold from September 16-30 = $2,400

26

Sept 30

Cash received during September for services billed to members accounts = $4,400

27

Sept 30

Cash received for visitors greens fees (fee to play the golf course) = $1,250

28

Sept 30

Purchased additional fixtures for the golf club totaling $2,650. The total amount was paid in cash.

  1. Depreciation expense for the month of September should be calculated using the straight-line method with the following useful lives (no salvage value is anticipated. If necessary, round to the nearest whole dollar):

Furniture 5 years

Fixtures 5 years

Equipment 3 years

  1. At the end of the month, a physical count was taken of the Golf Clubs assets, inventories and supplies. It revealed the following information:
  2. Seven of the shirts for resale were on hand at September 30.
  3. Concession merchandise still on hand as of September 30 amounted to $675.
  4. Salaries earned by employees but unpaid at September 30 totaled $3,300

4. There were $425 of Office Supplies still on hand as of September 30.

  1. What are the journal entries for Transactions #1 and #2?

    A.
    Cash 60,000
    Common Stock 60,000
    Rent Expense 45,000
    Cash 45,000
    B.
    Cash 180,000
    Retained Earnings 180,000
    Rent Expense 45,000
    Cash 45,000
    C.
    Cash 60,000
    Retained Earnings 60,000
    Cash 45,000
    Prepaid Rent 45,000
    D.
    Cash 180,000
    Common Stock 180,000
    Prepaid Rent 45,000
    Cash 45,000

  2. What are the journal entries for Transactions #3 and #4?

    A.
    Furniture 18,300
    Fixtures 5,100
    Equipment 79,200
    Cash 20,520
    Accounts Payable 82,080
    Prepaid Insurance 3,600
    Cash 3,600
    B.
    Furniture 18,300
    Fixtures 5,100
    Equipment 79,200
    Cash 20,520
    Note Payable 82,080
    Prepaid Insurance 3,600
    Cash 3,600
    C.
    Furniture 18,300
    Fixtures 5,100
    Equipment 79,200
    Cash 20,520
    Note Payable 82,080
    Prepaid Insurance 21,600
    Cash 21,600
    D.
    Furniture 18,300
    Fixtures 5,100
    Equipment 79,200
    Interest Expense 4,925
    Cash 20,520
    Note Payable 82,080
    Interest Expense 4,925
    Prepaid Insurance 3,600
    Cash 3,600

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