Question

Bradley’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 $57,500 cash in the business in exchange for common stock of the corporation.
3		Purchased Snead’s Golf Land for $48,000 cash. The price consists of land $24,700, building $9,670, and equipment $13,630. (Record this in a single entry.)
5		Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,280 cash.
6		Paid cash $3,000 for a 1-year insurance policy.
10		Purchased golf clubs and other equipment for $5,700 from Tahoe Company, payable in 30 days.
18		Received golf fees of $1,250 in cash from customers for golf services performed.
19		Sold 100 coupon books for $25 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 $560 cash dividend.
30		Paid salaries of $740.
30		Paid Tahoe Company in full for equipment purchased on March 10.
31		Received $940 in cash from customers for golf services performed.

Answer 1

		Debit	Credit
Mar 1	Cash	57500
	Common stock		57500
Mar 3	Land	24700
	Buildings	9670
	Equipment	13630
	Cash		48000
Mar 5	Advertising expense	1280
	Cash		1280
Mar 6	Prepaid insurance	3000
	Cash		3000
Mar 10	Equipment	5700
	Accounts payable		5700
Mar 18	Cash	1250
	Service revenue		1250
Mar 19	Cash	2500		=100*25
	Unearned service revenue		2500
Mar 25	Dividends	560
	Cash		560
Mar 30	Salaries and wages expense	740
	Cash		740
Mar 30	Accounts payable	5700
	Cash		5700
Mar 31	Cash	940
	Service revenue		940