Question

P3-9 (Adjusting and Closing) Presented below is the trialbalance of the Crestwood Golf Club, Inc. as of
December 31. The books are closed annually on December 31.
CRESTWOOD GOLF CLUB, INC.
TRIAL BALANCE
DECEMBER 31

Debit Credit
Cash 15,000
Accounts Receivable 13,000
Allowance for Doubtful Accounts 1,100
Prepaid Insurance 9,000
Land 350,000
Buildings 120,000
Accumulated Depreciation—Buildings 38,400
Equipment 150,000
Accumulated Depreciation—Equipment 70,000
Common Stock 400,000
Retained Earnings 82,000
Dues Revenue 200,000
Green Fees Revenue 5,900
Rent Revenue 17,600
Utilities Expenses 54,000
Salaries and Wages Expense 80,000
Maintenance and Repairs Expense 24,000
$815,000 $815,000

Instructions
(a) Enter the balances in ledger accounts. Allow five lines foreach account.
(b) From the trial balance and the information given below, prepareannual adjusting entries and post
to the ledger accounts. (Omit explanations.)
(1) The buildings have an estimated life of 30 years with nosalvage value (straight-line method).
(2) The equipment is depreciated at 10% per year.
(3) Insurance expired during the year $3,500.
(4) The rent revenue represents the amount received for 11 monthsfor dining facilities. The December
rent has not yet been received.
(5) It is estimated that 12% of the accounts receivable will beuncollectible.
(6) Salaries and wages earned but 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 and post.