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Use the Perpetual Inventory method as discussed in class for all sales of merchandise. TRANSACTION # DATE TRANSACTION DESCRIPTION 1 Sept 1 At the beginning

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.

ADDITIONAL INFORMATION:

  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:
  1. Seven of the shirts for resale were on hand at September 30.
  2. Concession merchandise still on hand as of September 30 amounted to $675.
  1. 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.

On the Financial Statements worksheet, the Gross Profit in the Income Statement is...

A.

$37,603

B.

$31,347

C.

$33,747

D.

$25,417

On the General Ledger, what is the COGS ending balance, after the closing entry has been made?

$6,256

$1,056

$5,200

$0

On the General Ledger, what is the Unearned Revenue ending balance after the adjusting entry has been made?

A.

$225,000

B.

$208,593

C.

$168,750

D.

$152,343

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