Question
***URGENT REPOST [initial answer image was unreadable]*** I recognize this is a long problem, but any help ASAP would be greatly appreciated. From the following
***URGENT REPOST [initial answer image was unreadable]***
I recognize this is a long problem, but any help ASAP would be greatly appreciated. From the following transactions, I need to record, adjust, then close the accounts. There should only be a total of nine adjusting entries when finished.
I am supposed to find that the debits and credits before adjusting entries are: 455,328; after adjusting entries: 461,628; and after closing: 429,733. All my previous attempts were unable to find these values. The transactions are below:
TRANSACTION # | DATE | TRANSACTION DESCRIPTION |
1 | Jan 1 | At the beginning of January, three brothers organized The Golf Ranch by contributing $40,000 each to begin the new business in exchange for shares of stock. |
2 | Jan 2 | Signed a one-year lease on an existing golf club and golf course for The Golf Ranch and made a $40,000 advance payment for the first four months rent. |
3 | Jan 2 | The Golf Ranch purchased the following fixed assets, paying 20% down and giving a two-year, 6% APR, note for the balance. Principle and interest are due at maturity. Furniture..$18,300 Fixtures$5,100 Equipment...$79,200 $102,600 |
4 | Jan 3 | Purchased a 4-month insurance policy on The Golf Ranch and its contents and paid the premium of $4,000 in advance. |
5 | Jan 3 | Purchased office supplies for $700 on an open account from Office Supplies. The Golf Ranch has 30 days to pay for the supplies. |
6 | Jan 3 | Purchased on account a total of 100 shirts with an embroidered Golf Ranch logo from Shirt Creations at a price of $10 per shirt. These shirts are available for resale to customers. |
7 | Jan 3 | Purchased concessions for $4,200 from Zeta Distribution. These concessions consist of energy drinks, chips, crackers, nuts, etc., and are available for resale to customers. The Golf Ranch paid 25% down and put the balance on account. |
8 | Jan 3 | Sold 75, twelve-month memberships to The Golf Ranch for $2,250 each. All membership dues were collected in cash. |
9 | Jan 3 | Purchased a 6-month maintenance contract with landscaping to provide grounds maintenance. Paid $7,800 in advance for this service. |
10 | Jan 5 | Provided 60 hours of golf lessons to members. Fees are charged at a rate of $60/hour. Of these fees, $650 was collected in cash and the balance was billed to individual members accounts. |
11 | Jan 6 | Received a bill for $250 from The Golf Ranchs lawyer for legal services rendered. |
12 | Jan 8 | Sold 44 shirts to a corporate member, Allen & Co. for $22 each. Collected $450 in cash and the balance is owed to The Golf Ranch on account. |
13 | Jan 14 | Purchased an additional $250 in office supplies on open account from Office Supplies. |
14 | Jan 15 | Paid wages and salaries of $2,250 to Golf Ranch employees. |
15 | Jan 15 | Sold 25, twelve-month memberships to the club for $2,250 each. Collected the dues in cash. |
16 | Jan 15 | The concessions stand reported sales of merchandise for $5,500 for the first half of the month. The concessions that were sold had an original cost of $2,800. All of these transactions were billed directly to each members account. |
17 | Jan 16 | Purchased additional concessions for $1,800 from Zeta Distributing on open account. |
18 | Jan 18 | Paid the total amounts due to C&C Creations, the Golf Ranchs attorney and Office Supplies. |
19 | Jan 19 | Sold 36 of the shirts purchased on January 3 to individual customers for $30 each. Collected 30% in cash, the balance is owed to the Golf Ranch on account. |
20 | Jan 22 | The Golf Ranch declared and paid a dividend of $1,000 to each shareholder. |
21 | Jan 26 | Collected the balance of what was owed on account from Allen & Co. |
22 | Jan 28 | Received a utility bill that totaled $980 for the month. It is due Feb. 14. |
23 | Jan 31 | Fees for golf lessons for the last half of January (billed to members accounts) = $4,680 |
24 | Jan 31 | Cash sales of shirts (8 @ $30 each) = $240. These shirts were purchased by the Golf Club on Jan. 3. |
25 | Jan 31 | Sales for concessions during the last half of January (30% collected in cash) = $5,000 Cost of concessions sold from January 16-30 = $2,400 |
26 | Jan 31 | Cash received during January for services billed to members accounts = $4,400 |
27 | Jan 31 | Cash received for visitors greens fees (fee to play the golf course) = $1,250 |
28 | Jan 31 | Purchased additional fixtures for the golf club totaling $2,650. The total amount was paid in cash. |
Other relevant information:
- Depreciation expense for the month of January should be calculated using the straight-line method with the following useful lives (no salvage value is anticipated. If necessary, round to the nearest whole dollar):
Furniture 5 years
Fixtures 5 years
Equipment 3 years
- At the end of the month, a physical count was taken of the Golf Clubs assets, inventories and supplies. It revealed the following information:
- Six of the shirts for resale were on hand at January 31.
- Concession merchandise still on hand as of January 31 amounted to $675.
- Salaries earned by employees but unpaid at January 31 totaled $3,300.
- There were $400 of Office Supplies still on hand as of January 31.
- On any other AJEs, round to the nearest dollar.
Thank you! If posting an image, one that is easy to read is appreciated.
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