Rolling Hills Golf Inc. was organized on July 1, 2012. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here.
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ROLLING HILLS GOLF INC.
Trial Balance
September 30, 2012
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Unadjusted
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Adjusted
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Dr.
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Cr.
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Dr.
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Cr.
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Cash
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$ 6,700
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$ 6,700
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Accounts Receivable
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400
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1,000
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Prepaid Rent
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1,800
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|
900
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Supplies
|
1,200
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|
180
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Equipment
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15,000
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|
15,000
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Accumulated Depreciation-Equipment
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|
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$ 350
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Notes Payable
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$ 5,000
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5,000
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Accounts Payable
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1,070
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1,070
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Salaries and Wages Payable
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|
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600
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Interest Payable
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|
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50
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Unearned Rent Revenue
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1,000
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|
800
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Common Stock
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14,000
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14,000
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Retained Earnings
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0
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0
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Dividends
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600
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|
600
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Service Revenue
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14,100
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14,700
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Rent Revenue
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700
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|
900
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Salaries and Wages Expense
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8,800
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9,400
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Rent Expense
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900
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1,800
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Depreciation Expense
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350
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Supplies Expense
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1,020
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Utilities Expense
|
470
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470
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Interest Expense
|
|
|
50
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$35,870
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$35,870
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$37,470
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$37,470
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Instructions
(a) Journalize the adjusting entries that were made.
(b) Prepare an income statement and a retained earnings statement for the 3 months ending September 30 and a classified balance sheet at September 30.
(c) Identify which accounts should be closed on September 30.
(d) If the note bears interest at 12%, how many months has it been outstanding?