Question

Business Events and Transactions for September 2019:

The following transactions occurred during the first week of September.

• September 1- Pay the $3,175 August interest owed to the bank. Also make a $40,000 payment on the bank note principal.

• September 1- The company purchased office supplies for the first time in September. They purchased $2,400 in supplies from Office Depot and paid for it in cash.

• September 5- the company has collected $225,000 in cash on the August 31 outstanding accounts receivable. Record the collection of the accounts receivable.

• September 5- Sunhurst Country Club, LLC paid its outstanding August 31 Salaries Payable of $3,000.

• September 5- Sunhurst Country Club, LLC paid the August 31 accounts payable of $184,921. Since no purchase discounts were available, the full amount owed for August was paid.

Record the following transactions that occurred during the month of September. Record the transactions on September 30^th:

• Total Rental Fees for golf clubs, carts, etc collected in cash for the month were $22,500.

• Total Greens Fees Revenue collected in cash for the month of September was $245,600.

• The golf instructor has finished the last two weeks of golf lessons for the students that paid in July (4 weeks of revenue earned during last month August and remaining 2 weeks in September). The golf students who paid in August began their lessons in September. The golf course has earned 4 of the six weeks that the students paid for in August. Record the total golf lesson revenue earned during the month of September. Use the Excel Template to help you make the calculation.

• Golf course maintenance expenses paid in cash for the month of September were $155,200.

• Payroll accounting (see Chapter 8): The salary expense for September was $23,000. Payroll withholdings for the employees’ federal, state and FICA withholdings totaled $4,500 which was accrued at month end for payment in October. This resulted in the net payroll paid to employees of $18,500 during September. Credit the “Payroll Taxes Payable” account for the withholdings and cash for the net payroll the employees received. RECORD THE FOLLOWING ENTRY:

Salaries Expense 23,000

Payroll Tax Payable 4,500

Cash 18,500

2

• Utility expenses (electricity, water, sewer) paid in cash during September totaled $48,120.

In a journal please, I want to make sure I did it correctly.

Answer 1

Date	Account	Dr	Cr
Sep-01	Bank Interest A/c	3,175
	To Bank A/c		3,175
	(Being Interest paid to Bank)
Sep-01	Bank Note Payable A/c	40,000
	To Bank A/c		40,000
	(Being Note payable to Bank paid)
Sep-01	Office Supplies A/c	2,400
	To Cash A/c		2,400
	(Being Office supplies purchased in cash)
Sep-05	Cash A/c	225,000
	To Accounts Receivable A/c		225,000
	(Being collection from accounts receivables)
Sep-05	Salary Payable A/c	3,000
	To Bank A/c		3,000
	(Being August outstading salaries paid)
Sep-05	Accounts Payable A/c	184,921
	To Bank A/c		184,921
	(Being Accounts payable settled)
Sep-30	Cash A/c	22,500
	To Rental Income A/c		22,500
	(Being the fees of Golf Clubs, carts, etc., collected)
Sep-30	Cash A/c	245,600
	To Green Fees Revenue A/c		245,600
	(Green Fees revenue collected)
Sep-30	Golf Course Maintenance A/c	155,200
	To Cash A/c		155,200
	(Being Golf Course maintenance fee paid)
Sep-30	Salary A/c	23,000
	To Bank A/c		18,500
	To Payroll Taxes Payable A/c		4,500
	(Being the salary expense for Sep)
Sep-30	Utility Expenses A/c	48,120
	To Cash A/c		48,120
	Being Utiity Expenses paid in cash)

Revenue collected from students for golf lessons cannot be recorded as the data is not available for the same.