Golf Academy, Incorporated, provides private golf lessons. Its unadjusted trial balance at December $31,2021,$ follows, along with information about selected accounts. 

 

Account Names Debit Credit Further Information

Cash $ $32,000$ As reported on December $31$ bank statement.

Supplies $620$ Based on count, only $$210$ of supplies still exist.

Deferred Revenue $ $3,000$ Of this amount, $$2,600$ was received for December lessons and $$400$ for January lessons.

Salaries and Wages Payable $0$ Employees were paid $$1,100$ for $10$ days of work through December $28.$ They have not yet been paid for work on December $29$ and $30.$

Income Tax Payable $0$ The company has paid last years income tax but not this years tax.

Interest Payable $0$ The company has not paid the $$105$ of interest owed on its notes payable for the current period.

Notes Payable $($long$-$term$)12,600$ This one$-$year note was taken out this year on December $1.$

Common Stock $1,000$ This amount was contributed for common stock in prior years.

Retained Earnings $3,100$ This is the balance reported at the end of last year.

Service Revenue $51,620$ Most customers pay cash for lessons each time they are provided, but some customers pay in advance.

Salaries and Wages Expense $36,200$ Employees worked through December $30$ but did not work on December $31.$

Supplies Expense $2,500$ This is the cost of supplies used through November $30.$

Interest Expense $0$ The company has not paid the $$105$ of interest owed on its notes payable for the current period.

Income Tax Expense $0$ The company has an average tax rate of $20\%.$

Totals $ $71,320$ $ $71,320$

  

Prepare the adjusting journal entries that are required at December $31,2021.($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account.

Answer rating: 100% (QA)

Answer Lets prepare the adjusting journal entries based on the information provided Supplies Adjustm... View the full answer