Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 62

Preparing Adjusting Entries
Florida Palms Country Club adjusts its accounts monthly.lub members pay their annual dues in advance by January 4.he entire amount is initially credited to Unearned Membership Dues.t the end of each month, an appropriate portion of this amount is credited to Membership Dues Earned.uests of the club normally pay green fees before being allowed on the course.he amounts collected are credited to Green Fee Revenue at the time of receipt.ertain guests, however, are billed for green fees at the end of the month.he following information is available as a source for preparing adjusting entries at December 31:
1.alaries earned by golf course employees that have not yet been recorded or paid amount to $9,600.
2.he Tampa University golf team used Florida Palms for a tournament played on December 30 of the current year.t December 31, the $1,800 owed by the team for green fees had not yet been recorded or billed.
3.embership dues earned in December, for collections received in January, amount to $106,000.
4.epreciation of the country club's golf carts is based on an estimated life of 15 years.he carts had originally been purchased for $180,000.h'e straight-line method is used.
( Note : The clubhouse building was constructed in 1925 arid is fully depreciated.)
5. 12-month bank loan in the amount of $45,000.had been obtained by the country club on November 1.nterest is computed at an annual rate of 8 percent.he entire $45,000, plus all of the interest accrued over the 12-month life of the loan, is due in full on October 31 of the upcoming year.he necessary adjusting entry was made on November 30 to record the first- month of accrued interest expense.owever, no adjustment has been made to record interest expense accrued in December.
6. one-year property insurance policy had been purchased on March 1.he entire premium of $7,800 was initially recorded as Unexpired Insurance.
7.n December, Florida Palms Country Club entered into an agreement to host the annual tournament of the Florida Seniors Golf Association.he country club expects to generate green fees of $4,500 from this event.
8.nrecorded Income Taxes-Expense accrued in December amounts to $19,000.his amount will not be paid until January 15.
Instructions
a.or each of the above numbered paragraphs, prepare the necessary adjusting entry (including an explanation).f no adjusting entry is required, explain why.
b.our types of adjusting entries are described at the beginning of the chapter.sing these descriptions, identify the type of each adjusting entry prepared in part a above.
c.lthough Florida Palms's clubhouse building is fully depreciated, it is in excellent physical condition.xplain how this can be.