Adjusting and Closing Presented on the next page is the trial balance of the Crestwood Golf Club, Inc. as of December 31. The books are closed annually on December 31.

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 residual value (straight-line method),
(2) The equipment is depreciated at 10% per year.
(3) Insurance expired during the year $3,500.
(4) The rental 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 earned that not paid by December 31, $3,600.
(7) Dues received in advance from members $8,900.
(c) Prepare an adjusted trial balance,
(d) Prepare closing entries andpost.

Transcribed Image Text:

CRESTWOOD GOLF CLUB, INC. TRIAL BALANCE DECEMBER 31 Debit Credit S 15,000 13,000 Cash Accounts Receivable $ 1,100 Allowance for Doubtful Accounts Prepaid Insurance 9,000 350,000 Land Buildings Accumulated Depreciation-Buildings Equipment Accumulatod Depreciation-Equipment Share Capital-Ordinary Retained Earnings Dues Revenue 120,000 38,400 150.000 70.000 400,000 82.000 200,000 5,900 Greens Fee Revenue Rental Revenue 17,600 Utilities Expense Salaries Expense Maintenance Expense 54,000 80,000 24.000 $815,000 $815,000