Question

Indigo's Miniature Golf and Driving Range Inc. was opened on March 1 by Bob Dean. These selected events and transactions occurred during March. Mar. 1 Stockholders invested $55,500 cash in the business in exchange for common stock of the corporation. 3 Purchased Snead's Golf Land for $41,000 cash. The price consists of land $24,500, building $9,190, and equipment $7,310. (Record this in a single entry.) 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $2,470 cash. 6 Paid cash $4,150 for a 1-year insurance policy. 10 Purchased golf clubs and other equipment for $5,900 from Tahoe Company, payable in 30 days. 18 Received golf fees of $2,800 in cash from customers for golf services performed. 19 Sold 130 coupon books for $25 each in cash. Each book contains 10 coupons that enable the holder to play one round of miniature golf or to hit one bucket of golf balls. (Hint: The revenue should not be recognized until the customers use the coupons.) 25 Paid a $630 cash dividend. 30 Paid salaries of $710. 30 Paid Tahoe Company in full for equipment purchased on March 10. 31 Received $830 in cash from customers for golf services performed. Journalize the March transactions. Indigo's records golf fees as service revenue. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

		Debit	Credit
Mar 1	Cash	55500
	Common stock		55500
Mar 3	Land	24500
	Buildings	9190
	Equipment	7310
	Cash		41000
Mar 5	Advertising expense	2470
	Cash		2470
Mar 6	Prepaid insurance	4150
	Cash		4150
Mar 10	Equipment	5900
	Accounts payable		5900
Mar 18	Cash	2800
	Service revenue		2800
Mar 19	Cash	3250		=130*25
	Unearned service revenue		3250
Mar 25	Dividends	630
	Cash		630
Mar 30	Salaries and wages expense	710
	Cash		710
Mar 30	Accounts payable	5900
	Cash		5900
Mar 31	Cash	830
	Service revenue		830