Question

Monty’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 $61,000 cash in the business in exchange for common stock of the corporation.
3		Purchased Snead’s Golf Land for $40,400 cash. The price consists of land $24,800, building $8,390, and equipment $7,210. (Record this in a single entry.)
5		Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $2,430 cash.
6		Paid cash $2,100 for a 1-year insurance policy.
10		Purchased golf clubs and other equipment for $5,300 from Tahoe Company, payable in 30 days.
18		Received golf fees of $2,600 in cash from customers for golf services performed.
19		Sold 135 coupon books for $15 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 $490 cash dividend.
30		Paid salaries of $810.
30		Paid Tahoe Company in full for equipment purchased on March 10.
31		Received $960 in cash from customers for golf services performed.

Journalize the March transactions. Monty’s records golf fees as service revenue. (If no entry is required, select "No Entry" for the account titles and enter 0 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

Date	General Journal	Debit	Credit
Mar 1	Cash	$61,000
	Common stock		$61,000
Mar 3	Land, Building and Equipment	$40,400
	Cash		40,400
Mar 5	Advertising expense	$2,430
	Cash		$2,430
Mar 6	Prepaid insurance	$2,100
	Cash		$2,100
Mar 10	Equipment	$5,300
	Accounts payable		$5,300
Mar 18	Cash	$2,600
	Service revenue		$2,600
Mar 19	Cash (135*$15)	$2,025
	Unearned service revenue		$2,025
Mar 25	Dividend	$490
	Cash		$490
Mar 30	Salaries expense	$810
	Cash		$810
Mar 30	Accounts payable	$5,300
	Cash		$5,300
Mar 31	Cash	$960
	Service revenue		$960