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Wildhorse Creek Golf Inc. was organized on July 1, 2022. Quarterly financial statements are prepared. The...

Wildhorse Creek Golf Inc. was organized on July 1, 2022. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown as follows.

WILDHORSE CREEK GOLF INC.
Trial Balance
September 30, 2022

Unadjusted

Adjusted

Dr.

Cr.

Dr.

Cr.

Cash

$ 6,340 $ 6,340

Accounts Receivable

530 1,260

Supplies

1,200 400

Prepaid Rent

1,740 870

Equipment

15,500 15,500

Accumulated Depreciation—Equipment

$ 310

Notes Payable

$ 5,500 5,500

Accounts Payable

2,000 2,000

Salaries and Wages Payable

650

Interest Payable

55

Unearned Rent Revenue

1,430 940

Common Stock

14,400 14,400

Retained Earnings

0 0

Dividends

490 490

Service Revenue

17,400 18,130

Rent Revenue

1,170 1,660

Salaries and Wages Expense

8,990 9,640

Rent Expense

820 1,690

Depreciation Expense

310

Supplies Expense

800

Utilities Expense

6,290 6,290

Interest Expense

        55    

$41,900

$41,900

$43,645

$43,645

1. Journalize the adjusting entries that were made. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

2.Prepare an income statement for the 3 months ending September 30.

3.Prepare a classified balance sheet at September 30. (List current assets in order of liquidity.)

4.Identify which accounts should be closed on September 30.

5.If the note bears interest at 12%, how many months has it been outstanding?



Solutions

Expert Solution

To prepare the adjusting entries, difference of each amount in unadjusted trial balance and adjusted trial balance need to be calculated.

1,2 and 3 are prepared in attachment.

4. Following accounts need to be closed

Service revenue

Rent revenue

Supplies expense

Rent expense

Depreciation expense

Salaries and wages expense

Interest expense

Utilities expense

Dividends

5. Note payable is outstanding for one month

Calculation = 5,500*1/12*12%=55 $


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