Question

Marigold'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 $55,000 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 $22.400, building $9.170, and equipment $8,830. (Record this in a single entry) 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,210 cash. 6 Paid cash $4,050 for a 1-year Insurance policy. 10 Purchased golf clubs and other equipment for $4.700 from Tahoe Company, payable in 30 days. 18 Received golf fees of $1,750 in cash from customers for golf services performed 19 Sold 115 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 $680 cash dividend. 30 Paid salaries of $780. 30 Paid Tahoe Company in full for equipment purchased on March 10. 31 Received $960 in cash from customers for golf services performed

Answer 1

Ans:

Date	Account titles and Explanations	Debit	Credit
Mar-01	Cash	$ 55,000
	Common stock		$ 55,000
	(To record issue of shares for cash)
Mar-03	Land	$ 22,400
	Building	$    9,170
	Equipment	$    8,830
	Cash		$ 40,400
	(To record purchase of assets)
Mar-05	Advertising expenses	$    1,210
	Cash		$    1,210
	(To record advertising expenses)
Mar-06	Prepaid insurance	$    4,050
	Cash		$    4,050
	(To record payment of insurance premium)
Mar-10	Equipments	$    4,700
	Accounts payable		$    4,700
	(To record purchase of golf club and other equipment)
Mar-18	Cash	$    1,750
	Service revenue / Golf fee earned		$    1,750
	(To record golf fees earned)
Mar-19	Cash ($115*30)	$    3,450
	Unearned revenue		3,450
	(To record sale of coupon book)
Mar-25	Dividends	$        680
	Cash		$        680
	(To record payment of dividends)
Mar-30	Salaries expenses	$        780
	Cash		$        780
	(To record payment of salaries expense)
Mar-30	Accounts payable	$    4,700
	Cash		$    4,700
	(Paid creditors on account)
Mar-31	Cash	$        960
	Service revenue / Golf fee earned		$        960
	(To record golf service rendered)