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

تمرين 1

Preparing Adjusting Entries
The Georgia Gun Club adjusts its accounts monthly and closes its accounts annually.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 their fees before being allowed to use the facilities.he amounts collected are credited to Guest Fee Revenue at the time of receipt.ertain guests, however, are billed 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 the club's employees that have not yet been recorded or paid amount to $13,600.
2.he Georgia State Police used the club's facilities for target practice on December 30 of the current year.t December 31 , the $3,200 owed by the state police for guest fees had not yet been recorded or billed.
3.embership dues earned in December, for collections received at the beginning of the year, amount to $140,000.
4.epreciation of the furniture and fixtures in the clubhouse is based on an estimated life of eight years.hese items had originally been purchased for $120,000.he straight-line method is used.
( Note: The clubhouse building was constructed in 1956 and is fully depreciated.)
5. 12-month bank loan in the amount of $60,000 had been obtained by the club on October 4.nterest is computed at anannual rate of 8 percent.he entire $60,000, plus all of the interest accrued over the 12-month life of the loan, is due in full on September 30 of the upcoming year.henecessary adjusting entry was made on November 30 to record the first two months 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 April 30.he entire premium of $10,800 was initially recorded as Unexpired Insurance.
7.n December, the club entered into an agreement to host the annual tournament of the Georgia Junior Rifle Association.he club expects to generate guest fees of $7,200 from this event.
8.nrecorded Income Taxes Expense accrued in December amounts to $12,600.his amount will not be paid until January 22.
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 the clubhouse building is fully depreciated, it is in excellent physical condition.xplain how this can be.