Presented below is the trial balance of the Crestwood Golf Club, Inc. as of December 31. The books are closed annually on December 31. Crestwood Golf Club, Inc.Trial BalanceDecember 31 Debit Credit Cash $ 15,000 Accounts Receivable 13,000 Allowance for Doubtful Accounts $ 1,100 Prepaid Insurance 9,000 Land 350,000 Buildings 120,000 Accumulated Depreciation—Buildings 38,400 Equipment 150,000 Accumulated Depreciation—Equipment 70,000 Common Stock 400,000 Retained Earnings 82,000 Dues Revenue 200,000 Green Fees Revenue 5,900 Rent Revenue 17,600 Utilities Expenses 54,000 Salaries and Wages Expense 80,000 Maintenance and Repairs Expense 24,000 000,000 $815,000 $815,000 Instructions a. Enter the balances in ledger accounts. Allow five lines for each account. b. From the trial balance and the information given below, prepare annual adjusting entries and post to the ledger accounts. (Omit explanations.) 1. The buildings have an estimated life of 30 years with no salvage value (straight-line method). 2. The equipment is depreciated at 10% per year. 3. Insurance expired during the year $3,500. 4. The rent revenue represents the amount received for 11 months for dining facilities. The December rent has not yet been received. 5. It is estimated that 12% of the accounts receivable will be uncollectible. 6. Salaries and wages earned but not paid by December 31, $3,600. 7. Dues received in advance from members $8,900 were recorded as Dues Revenue. c. Prepare an adjusted trial balance. d. Prepare closing entries and post.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Presented below is the
| Crestwood Golf Club, Inc. Trial Balance December 31 |
||||
| Debit | Credit | |||
| Cash | $ 15,000 | |||
| 13,000 | ||||
| Allowance for Doubtful Accounts | $ 1,100 | |||
| Prepaid Insurance | 9,000 | |||
| Land | 350,000 | |||
| Buildings | 120,000 | |||
| 38,400 | ||||
| Equipment | 150,000 | |||
| Accumulated Depreciation—Equipment | 70,000 | |||
| Common Stock | 400,000 | |||
| 82,000 | ||||
| Dues Revenue | 200,000 | |||
| Green Fees Revenue | 5,900 | |||
| Rent Revenue | 17,600 | |||
| Utilities Expenses | 54,000 | |||
| Salaries and Wages Expense | 80,000 | |||
| Maintenance and Repairs Expense | 24,000 | 000,000 | ||
| $815,000 | $815,000 |
Instructions
a. Enter the balances in ledger accounts. Allow five lines for each account.
b. From the trial balance and the information given below, prepare annual
1. The buildings have an estimated life of 30 years with no salvage value (straight-line method).
2. The equipment is
3. Insurance expired during the year $3,500.
4. The rent revenue represents the amount received for 11 months for dining facilities. The December rent has not yet been received.
5. It is estimated that 12% of the accounts receivable will be uncollectible.
6. Salaries and wages earned but not paid by December 31, $3,600.
7. Dues received in advance from members $8,900 were recorded as Dues Revenue.
c. Prepare an adjusted trial balance.
d. Prepare closing entries and post.
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