Question

Pronghorn'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 $46,400 cash. The price consists of land $23,300, building $8,090, and equipment $15,010. (Record this in a single entry.) 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $2,370 cash. 6 Paid cash $3,700 for a 1-year insurance policy. 10 Purchased golf clubs and other equipment for $5,250 from Tahoe Company, payable in 30 days. 18 Received golf fees of $1,750 in cash from customers for golf services performed. 19 Sold 150 coupon books for $30 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 $480 cash dividend. 30 Paid salaries of $860. 30 Paid Tahoe Company in full for equipment purchased on March 10. 31 Received $800 in cash from customers for golf services performed. Journalize the March transactions. Pronghorn'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.) Date Account Titles and Explanation Debit Credit

Answer 1

			$	$
S.No.	Date	Account Title	Debit	Credit
1	Mar-01	Cash	61000
		To Common stock		61000
2	Mar-03	Land	23300
		Building	8090
		Equipment	15010
		To creditor for land		46400
3	Mar-05	Advertisement exp	2370
		To cash		2370
4	Mar-06	Insurance	308.3333
		Prepaid ins. (11 months)	3391.667
		To cash		3700
5	Mar-10	Equipment	5250
		To Tahoe company		5250
6	Mar-18	CAsh	1750
		To Service revenue		1750
7	Mar-19	CAsh	4500
		To Unearned Income		4500
8	Mar-25	Dividend	480
		To Cash		480
9	Mar-30	Salaries	860
		To Cash		860
10	Mar-30	Tahoe company	5250
		To Cash		5250
11	Mar-31	CAsh	800
		To Service revenue		800