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?
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
Chapter3: The Adjusting Process
Section: Chapter Questions
Problem 5PB: Reece Financial Services Co., which specializes in appliance repair services, is owned and operated...
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Question
Rolling Hills Golf Inc. was organized on July 1, 2020. Quarterly financial statements are prepared. The unadjusted
| 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 | ||||||
| $ 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 | ||||||
| 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
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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