Salt Creek Golf Inc. was organized on July 1, 2017. Quarterly financial statemen

Question

Salt Creek Golf Inc. was organized on July 1, 2017. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown here.

SALT CREEK GOLF INC.
Trial Balance
September 30, 2017

Unadjusted

Adjusted

Dr.

Cr.

Dr.

Cr.

$41,900

$41,900

$43,645

$43,645

1. Prepare a retained earnings statement for the months ending September 30. (List items that increase retained earnings first.)

Prepare a classified balance sheet at September 30. (List current assets in order of liquidity.)

Assets

Liabilities and Stockholders' Equity

SALT CREEK GOLF INC.
Trial Balance
September 30, 2017

Unadjusted

Adjusted

Dr.

Cr.

Dr.

Cr.

Cash $ 6,340 $ 6,340 Accounts Receivable 530 1,260 Supplies 1,200 400 Prepaid Rent 1,740 870 Equipment 15,500 15,500 Accumulated Depreciation—Equipment $ 310 Notes Payable $ 5,500 5,500 Accounts Payable 2,000 2,000 Salaries and Wages Payable 650 Interest Payable 55 Unearned Rent Revenue 1,430 940 Common Stock 14,400 14,400 Retained Earnings 0 0 Dividends 490 490 Service Revenue 17,400 18,130 Rent Revenue 1,170 1,660 Salaries and Wages Expense 8,990 9,640 Rent Expense 820 1,690 Depreciation Expense 310 Supplies Expense 800 Utilities Expense 6,290 6,290 Interest Expense         55    

$41,900

$41,900

$43,645

$43,645

1. Prepare a retained earnings statement for the months ending September 30. (List items that increase retained earnings first.)

SALT CREEK GOLF INC.
Retained Earnings Statement

For the Year Ended September 30, 2017For the Quarter Ended September 30, 2017September 30, 2017

DividendsExpensesNet Income / (Loss)Retained Earnings, July 1Retained Earnings, September 30RevenuesTotal ExpensesTotal Revenues

$

AddLess

:

DividendsExpensesNet Income / (Loss)Retained Earnings, July 1Retained Earnings, September 30RevenuesTotal ExpensesTotal Revenues

AddLess

:

DividendsExpensesNet Income / (Loss)Retained Earnings, July 1Retained Earnings, September 30RevenuesTotal ExpensesTotal Revenues

DividendsExpensesNet Income / (Loss)Retained Earnings, July 1Retained Earnings, September 30RevenuesTotal ExpensesTotal Revenues

$

Explanation / Answer

Income statement Revenue Service revenue 18130 Rent revenue 1660 Total revenue 19790 Expense Salaries and wages expense 9640 Rent expense 1690 Depreciation expense 310 Supplies expense 800 utilities expense 6290 Interest expense 55 Total expense 18785 Net income 1005 Retained earnings statement Beginning retained earnings 0 Add Net income 1005 1005 Less Dividend 490 Ending retained earnings 515 Balance sheet Assets Current asset Cash 6340 Accounts receivable 1260 Supplies 400 Prepaid rent 870 Total current assets 8870 Property plant and equipment Equipment 15500 Accumulated depreciation equipment -310 15190 Total assets 24060 Liabilities and shareholders equity Liabilities Current liability Accounts payable 2000 Salaries and wages payable 650 Interest payable 55 Unearned rent revenue 940 Total current liabilities 3645 Notes payable 5500 Total liabilities 9145 Shareholders equity Common stock 14400 Retained earnings 515 Total shareholders equity 14915 Total liabilities and shareholders equity 24060

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