Question

Problem: Frontier Park was started on April 1 by C. J. Mendez. The following selected events a 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 1 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

Solution General Journal Debit Credit Date Cash $40,000 Apr 1 C.J. Mendez, Capital $40,000 (To record cash invested in the business) $30,000 Land Apr 4 Cash $30,000 (To record purchase of land for cash) Advertising Expense $1,800 Apr 8 $1,800 Accounts Payable (To record advertising expense incurred on account) Salaries Expense Apr 11 $1,500 $1,500 Cash (To record salaries expense) |----No Journal Entry required---- Apr 12 Prepaid Insurance Apr 13 $1,500 Cash $1,500 (To record payment made on one-year insurance policy) C.J. Mendez, Drawing $1,000 Apr 17 Cash $1,000 (To record drawings made for personal use) $5,700 Apr 20 Cash $5,700 Admission Revenue (To record admission fee revenue) Cash $2,500 Apr 25 Unearned Admission Revenue $2,500 (To record unearned admission revenue) Cash $8,900 Apr 30 $8,900 Admission Revenue (To record admission fee revenue) Accounts Payable Apr 30 $900 Cash $900 (To record payment made on account)