The assets and liabilities of the Seashore Swimming Club as at 1st June 2007 
were: Balance at bank Sh. 580. Equipment Sh. 290. Sundry expenses owing Sh. 
15 Stock of Refreshments Sh. 20. Rent prepaid Sh. 40. Accumulated fund 
Sh.915.
The following is a summary of the Receipts and Payments of the club for the year 
ended 31st May 2008.
Receipts Sh. Payments Sh.
Opening balance 1st June 07 580 Expenses of Dance 529
Annual Dance 917 Rent of Clubroom 540
Subscriptions 624 Purchase of Equipment 250
Locker Rents 248 Prizes of Competitions 95
Sales of Refreshments 268 Sundry Expenses 110
Competition Fees 142 Purchases of Refreshments 160
Sale of Swimming Permits 60 License Fees to Council 90
The following information is also available:
a) Stock of Refreshments at 31st May 2008 was Sh. 10
b) Rent of Clubroom prepaid 31st May 2008 was Sh. 50
c) Sundry Expenses owing 31st May 2008 was Sh. 10

REQUIRED:
a) Calculate the club's bank balance as at 31st May 2008; and
b) Prepare an Income and Expenditure account for the year ended 31st May 2008 
showing clearly the profits/loss on the dance and the sale of refreshments 
and a Balance Sheet as at that date

1. Sale of old materials must be shown on the credit sideof
(a) Cash Book
(b) Income & Expenditure Account
(c) Balance Sheet
(d). none of the above.

2. Receipts and Payment Account shows:
(a) Income & expenditure
(b) Cash receipts and payments
(c) Assets and liabilities.
(d) none of the above.

3. Income and expenditure account reveals:
(a) Cash in hand
(b) Surplus or deficiency
(c) Capital account.
(d) none of the above.

4. Donation received for a specific purpose:
(a) Should be credited to a separate account and shown on theliabilities side of the Balance Sheet,
(b) Should be credited to income and expenditure account,
(c) Should not be recorded at all.
(d) none of the above.

David Inc. incurred the following costs associated with the purchase of a piece of land that it will use to build an office building:

Sale price of land $500,000

Sale of salvaged material on land 20,000

Demolition of old building on land 10,000

Ground breaking ceremony refreshments 1,500

Legal fees to lawyers for the deed 7,500

What amount should David Inc. record the land for?

All Seasons Service Trial Balance 31‐Dec‐15

Cash 126

Accounts Receivable 1708

Office Supplies 213

Equipment 23190

Accumulated Depreciation‐Equipment 2709

Accounts Payable 849
Credit Cards Payable 3454
Short Term Notes Payable 5250
Owner's Equity 500
Service Revenue 39373
Advertising 22

Bank Service Charge 282

Client Expenses 598

Refreshments 24

Commissions Paid to Independent Contractors 18583

Tax Expense 500

Dues and Subscriptions 1447

Filing Fees 420

Gifts 25

Insurance 852

Interest Expense 982

Meals and Entertainment 286

Miscellaneous Expense 189

Listing Fees 168

Shipping 40

Supplies Expense 67

Office Supplies Expense 164

Electronic Lock Subscription 206

Telephone Expense 1893

Website Expense 150

TOTALS 52135 52135

I need to create the adjustments for these for adjusted trialbalance:

1. All insurance was paid in January for 1-year policies thatare now expired

2. The client has elected to omit substantially all notes anddisclosures that would normally accompany a financial statement

3. The credit manager estimates that 350 of accounts receivablewill be uncollectible

4. A physical count of ordnary office supplies indicated that$103 were still present

5. Depreciation for 2015 has not yet been adjusted. the currentyear depreciation is estimated to be $474.