Rolling Hills Golf Inc. was organized on July 1, 2020. Quarterly financial statements are prepared. The unadjusted trial balance and adjusted trial balance on September 30 are shown below. Rolling Hills Golf Inc.Trial BalanceSeptember 30, 2020 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 Expenses 470 470 Interest Expense 00,000 00,000 50 00,000 $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. 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?

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

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Rolling Hills Golf Inc. was organized on July 1, 2020. Quarterly financial statements are prepared. The unadjusted trial balance and adjusted trial balance on September 30 are shown below.

Rolling Hills Golf Inc. Trial Balance September 30, 2020
		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 Expenses	470		470
Interest Expense	00,000	00,000	50	00,000
	$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.

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?

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