Question

Problem: Frontier Park was started on April 1 by C. J. Mendez. The following selected ever transactions occurred during April. Apr 1 Mendez invested $40,000 cash in the business. 4 Purchased land costing $30,000 for cash. 8 Incurred advertising expense of $1,800 on account. 11 Paid salaries to employees $1,500. 12 Hired park manager at a salary of $4,000 per month, effective May 13 Paid $1,500 cash for a one-year insurance policy. 17 Withdrew $1,000 cash for personal use. 20 Received $5,700 in cash for admission fees. 25 Sold 100 coupon books for $25 each. Each book contains 10 coupons that entitle the holder to one admission to the park. 30 Received $8,900 in cash admission fees. 30 Paid $900 on balance owed for advertising incurred on April 8. Mendez uses the following accounts: Cash Prepaid Insurance Land Accounts Payable Unearned Admission Revenue C. J. Mendez, Capital C. J. Mendez, Drawing Admission Revenue Advertising Expense Salaries Expense. Instructions: Journalize the transactions in the general journal.

Answer 1

Journal Entries In the Books of Frontier Park for the month of April

1st April Cash A/c ---------------------------------Dr 40000

To C.J.Mendez Capital A/c Cr 40000

(Being invested cash in Business)

4th April land A/c ----------------------------------Dr 30000

To Cash A/c Cr 30000

(Being purchased Land for cash)

8th April Advertisement Expenses A/c --------Dr 1800

To Accounts Payable Cr 1800

(Being incurred advertisement expenses on account)

11th April Salaries Expense A/c -------------------Dr 1500

To Cash Cr 1500

(Being paid Salaries to employees)

12th April Since park manager is hired from 1st May , no Journal entry will appear in the month of April

13th April Prepaid Insurance A/c ------------------Dr 1500

To Cash Cr 1500

(Being insurance paid for one Year)

17th April C.J.Mendez Drawings A/C ---------------Dr 1000

To Cash Cr 1000

(Being withdrew cash for personal Use)

20th April Cash A/c---------------------------------------Dr 5700

To Admission Revenue Cr 5700

(Being cash received for Admission fees)

25th April Unearned Admission Revenue A/c---------------Dr 2500

To Admission Revenue Cr 2500

(Being amount booked for 100 coupon books at $25 each)

30th April Cash A/c ------------------------------------------Dr 8900

To Admission Revenue Cr 8900

(Being cash received for Admission Fees)

30th April Accounts Payable A/c ---------------------------Dr 900

To Cash Cr 900

(Being amount paid for expense on advertisement incurred on account on 8th April)