Question

P3-4A Bradley's Miniature Golf and Driving Range Inc. was opened on March 1 by Bob Dean. These selected events and transactions occurred during March. Mar i Stockholders invested $50,000 cash in the business in exchange for common stock of the corporation. 3 Purchased Snead's Golf Land for $38,000 cash. The price consists of land $23,000, building $9,000, and equipment $6,000. (Record this in a single entry.) 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,200 cash.. 6 Paid cash $2,400 for a 1-year insurance policy. 10 Purchased golf clubs and other equipment for $5,500 from Tahoe Company, payable in 30 days. 18 Received golf fees of $1,600 in cash from customers for golf services performed. 19 Sold 100 coupon books for $25 each in cash. Each book contains 10 cou- pons 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 $500 cash dividend. 30 Paid salaries of $800. 30 Paid Tahoe Company in full for equipment purchased on March 10. 31 Received $900 in cash from customers for golf services performed. The company uses these accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Divi- dends, Service Revenue, Advertising Expense, and Salaries and Wages Expense. Instructions Journalize the March transactions, including explanations. Bradley's records golf fees as service revenue.

Answer 1

Date Account Titles and Debit 1 Credit explanation March 1 Cash $50,000 Common stock $50,000 (To record cash inverted) Mar 3 Land $23,000 Building $9,000 Equipment $ 6,000 cash (to record land, building, equipment purchased!) $38,000 Maris $ 1,200 Advertising expense Cash (To recond advertising expense) $ 1,200 mar. 6 $ 2,400 Prepaid Insurance cash (To second prepaid insurance) 1$ 2,400 Mar. 1o $ 5,500 Equipment оши Рауаblе (Te second equipment purchased) $ 5.500 Mar. 18 1$ 1,600 Cash service | (To recored Revenue golf fees received) 1,600

Mar. 19 Cash $2,500 $2,500 Unearned service Revenue. (To record books sold) Mar 25 & soo Dividend Cash (To recond $500 dividend paid) Mar 30 $ 800 salaries and wages Expense Cash (To record salaries paid) $ 800 Mar. 3o $ 5,5oo Payable $ 5,500 Accounts casho (To record cash paid for equipment) Mar 31 $900 $ 900 cashe - service Revenue (To recond cash received for services performed) Calculation. Mar. 19: Unearned service Revenue = Coupon Books sold & Price per Book a 100 coupon books & $25 = $2,500