P4-4A
|
Prepare adjusting entries and
financial statements; identify accounts to be closed.
(SO 4, 5, 6, 7), AP
Rolling Hills Golf Inc. was
organized on July 1, 2012. Quarterly financial statements are prepared. The
trial balance and adjusted trial balance on September 30 are shown here.
ROLLING HILLS GOLF INC.
|
Trial Balance
|
September 30, 2012
|
|
Unadjusted
|
Adjusted
|
|
Dr.
|
Cr.
|
Dr.
|
Cr.
|
Cash
|
$ 6,700
|
|
$ 6,700
|
|
Accounts Receivable
|
400
|
|
1,000
|
|
Prepaid Rent
|
1,800
|
|
900
|
|
Supplies
|
1,200
|
|
180
|
|
Equipment
|
15,000
|
|
15,000
|
|
Accumulated
Depreciation—Equipment
|
|
|
|
$ 350
|
Notes Payable
|
|
$ 5,000
|
|
5,000
|
Accounts Payable
|
|
1,070
|
|
1,070
|
Salaries and Wages Payable
|
|
|
|
600
|
Interest Payable
|
|
|
|
50
|
Unearned Rent Revenue
|
|
1,000
|
|
800
|
Common Stock
|
|
14,000
|
|
14,000
|
Retained Earnings
|
|
0
|
|
0
|
Dividends
|
600
|
|
600
|
|
Service Revenue
|
|
14,100
|
|
14,700
|
Rent Revenue
|
|
700
|
|
900
|
Salaries and Wages Expense
|
8,800
|
|
9,400
|
|
Rent Expense
|
900
|
|
1,800
|
|
Depreciation Expense
|
|
|
350
|
|
Supplies Expense
|
|
|
1,020
|
|
Utilities Expense
|
470
|
|
470
|
|
Interest Expense
|
|
|
50
|
|
|
$35,870
|
$35,870
|
$37,470
|
$37,470
|
|
|
Instructions
(a)
|
Journalize the adjusting entries
that were made.
|
(b)
|
Prepare an income statement and
a retained earnings statement for the 3 months ending September 30 and a
classified balance sheet at September 30.
(b) Net income
|
$2,510
|
Tot. assets
|
$23,430
|
|
|
|
(c)
|
Identify which accounts should
be closed on September 30.
|
(d)
|
If the note bears interest at
12%, how many months has it been outstanding?
|
|
No comments:
Post a Comment