Question

P2-1A Grandview Park was started on April 1 by R. S. Francis and associates. The follow- ing selected events and transactions occurred during April. Apr. 1 Stockholders invested $50,000 cash in the business in exchange for common stock. 4 Purchased land costing $34,000 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 $3,500 per month, effective May 1. 13 Paid $2,400 cash for a one-year insurance policy. 17 Declared and paid a $1,400 cash dividend. 20 Received $5,700 in cash for admission fees. 25 Sold 100 coupon books for $30 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 $840 on balance owed for advertising incurred on April 8. Grandview uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Pay- able, Unearned Service Revenue, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense. Instructions

this is an assignment to create journals for the 11 transactions in Prob 2-1A. This problem describes a Park, like Great Americas do for the Apr 25th transaction, you the park is selling an advance ticket book. Also Apr 12th is no transaction.

Answer 1

Answer:

Date	Description	Debit $	Credit $
1-Apr	Cash	50,000
	Common Stock		50,000
4-Apr	Land	34,000
	Cash		34,000
8-Apr	Advertisement expanses	1800
	Accounts payable		1800
11-Apr	Salary Expanses	1500
	Cash		1500
12-Apr	No entry required for this transaction
13-Apr	Prepaid Insurance	2400
	Cash		2400
17-Apr	Devidend	1400
	Cash		1400
20-Apr	Cash	5700
	Admission revenue		5700
25-Apr	Cash (100*30)	3000
	Unearned Admission revenue		3000
30-Apr	Cash	8900
	Admission revenue		8900
30-Apr	Accounts payable	840
	Cash		840