Kilda Recreational Club€™s adjusted trial balance at the end of its fiscal year follows.

Required
1. Prepare T accounts and enter the balances for M. Kilda, Capital; M. Kilda, Withdrawals; Income Summary, and all revenue and expense accounts.
2. Enter the four required closing entries in the T accounts, labeling the components a (credit balances), b (debit balances), c (Income Summary), and d (withdrawals), as appropriate.
3. Prepare an income statement, a statement of owner€™s equity, and a balance sheet for Kilda Recreational Club.
4. Explain why it is necessary to make closing entries at the end of an accountingperiod.

Transcribed Image Text:

Kilda Recreational Club Adjusted Trial Balance June 30, 2014 Cash Prepaid Advertising Supplies Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Accounts Payable Wages Payable Property Taxes Payable Unearned Revenue-Locker Fees M. Kilda, Capital M. Kilda, Withdrawals Revenue from Court Fees Revenue from Locker Fees Wages Expense Maintenance Expense Advertising Expense Utilities Expense Supplies Expense Depreciation Expense-Building Depreciation Ex Property Taxes Expense Miscellaneous Expense 52,400 19,200 2,400 200,000 1,290,400 520,000 312,000 100,800 146,000 18,000 45,000 6,000 942,300 108,000 1,356,200 19,200 702,000 103,200 79,500 129,600 12,000 60,000 24,000 45,000 13,800 3,153,500 pense-Equipment 3,153,500