Maurice Tutor
$15/per page/Negotiable
Closing Entries Using T Accounts and Preparation of Financial Statements
The adjusted trial balance for Settles Tennis Club at the end of the company’s fiscal year appears at the top of the next page.
Required
1. Prepare T accounts and enter the balances for B. Settles, Capital; B. Settles, Withdrawals; Income Summary, and all revenue and expense accounts.
2. Enter the four required closing entries in the T accounts, labeling the components a , b , c , and d , as appropriate.
3. Prepare an income statement, a statement of retained earnings, and a balance sheet for Settles Tennis Club.
4. Explain why it is necessary to make closing entries at the end of an accounting period.
|
Settles Tennis ClubAdjusted Trial BalanceJune 30, 2011 |
||
|
Cash |
$26,200 |
 |
|
Prepaid Advertising |
9,600 |
 |
|
Supplies |
1,200 |
 |
|
Land |
100,000 |
 |
|
Building |
645,200 |
 |
|
Accumulated Depreciation–Building |
 |
$260,000 |
|
Equipment |
156,000 |
 |
|
Accumulated Depreciation–Equipment |
 |
50,400 |
|
Accounts Payable |
 |
73,000 |
|
Wages Payable |
 |
9,000 |
|
Property Taxes Payable |
 |
22,500 |
|
Unearned Revenue–Locker Fees |
 |
3,000 |
|
B. Settles, Capital |
 |
471,150 |
|
B. Settles, Withdrawals |
54,000 |
 |
|
Revenue from Court Fees |
 |
678,100 |
|
Revenue from Locker Fees |
 |
9,600 |
|
Wages Expense |
$351,000 |
 |
|
Maintenance Expense |
51,600 |
 |
|
Advertising Expense |
39,750 |
 |
|
Utilities Expense |
64,800 |
 |
|
Supplies Expense |
6,000 |
 |
|
Depreciation Expense–Building |
30,000 |
 |
|
Depreciation Expense–Equipment |
12,000 |
 |
|
Property Taxes Expense |
22,500 |
 |
|
Miscellaneous Expense |
6,900 |
$6,900 |
| Â |
$1,576,750 |
$1,576,750 |