Question

CALCULATOR PRINTER VERSION BACK NEXT Problem 2-01A Holz Disc Golf Course was opened on March 1 by Mountain Holz. The following selected events and transactions occurred during March. Mar. 1 Invested $20,000 cash in the business 3 Purchased Rainbow Golf Land for $13,000 cash. The price consists of land $10,200, shed $1,800, and equipment $1,000. (Make one compound entry.) 5 Paid advertising expenses of $600. 6 Pald cash $640 for a one-year insurance policy. 10 Purchased golf discs and other equipment for $1,000 from Stevenson Company payable in 30 days. 18 Received $1,300 in cash for golf fees (Holz records golf fees as service revenue). 19 Sold 200 coupon books for $10 each. Each book contains 4 coupons that enable the holder to play one round of disc golf. 25 Withdrew $900 cash for personal use. 30 Paid salaries of $400. 30 Paid Stevenson Company in full. 31 Received $2,100 cash for golf fees.

Answer 1

The Journal Entries Are as follows: Date Credit Debit $20,000 Particulars Cash To common stock (To record cash invested in the business) $20,000 Mar-01 Land Buildings Equipment To Cash (To record purchase of rainbow golf) $10,200 $1,800 $1,000 Mar-03 $13,000 $600 Advertising expenses To cash (To record advertising expenses paid) Mar-05 $640 Prepaid insurance To cash (To record cash paid for insurance policy) Mar-06 $1,000 Equipment To accounts payable (To record golf equipment purchased on account) $1,000 Mar-10 $1,300 Cash To service revenue (To record golf fees earned) $1,300 Mar-18 $2,000 Cash (100 coupons x $20 each coupon) To unearned revenue (To record sale of coupons in advance) $2,000 Mar-19 $900 Drawings To cash (To record withdrawals for personal use) $900 Mar-25 Salaries expense To cash (To record salaries paid) Mar-30 Accounts payable To cash record payment made to creditors) $1,000 Mar-30 $2,100 Mar-31 Cash To service revenue (To record golf fees earned) $2,100