Reference no: EM132678539

The Briars Curling ClubTrial BalanceDecember 31, 2020

Cash  108000

Accounts receivable 58000

Allowance for doubtful accounts 8000

Land 350000

Buildings 598000

Accumulated depreciation-buildings 33000

Equipment 250000

Accumulated depreciation-equipment 70000

Prepaid insurance 12000

Common shares 870000

Retained earnings 156000

Sales revenue 408000

Rent revenue 44000

Utilities expense 74000

Salaries and wages expense 90000

Repairs and maintenance expense 49000

1589000

Instructions

Problem a. Enter the balances in ledger accounts, using the ledger account format that we used in class. Allow about five lines for each account.

Problem b. From the trial balance and the information that follows, prepare annual adjusting entries and post to the ledger accounts:

1. The buildings have an estimated life of 40 years with no residual value. (The company uses the straight-line method.)

2. The equipment is depreciated at 10% of its year-end carrying value per year.

3. Insurance expired during the year was $5,200.

4. The rental revenue is the amount received for 11 months for dining facilities. The December rent of $5,000 has not yet been received. A Rent Receivable account is used.

5. It is estimated that 20% of the accounts receivable will be uncollectible.

6. Salaries and wages earned but not paid by December 31 amounted to $4000.

7. Sales revenue included dues paid in advance by members and totalled $10000.

Problem c. Prepare closing entries and post to the ledger.