Question

CALCULATOR PRINTEE VERSION BACK Problem 3-04A Ayayai'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 $55,500 cash in the business in exchange for common stock of the corporation 3 Purchased Sead's Golf Land for $44,100 cash. The price consists of land $22.500, building $8,710, and equipment $12,890. (Record this in a single entry) 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $2.230 cash. 6 Paid cash $3,500 for a 1-year insurance policy. 10 Purchased golf clubs and other equipment for $4,850 from Tahoe Company, payable in 30 days. 18 Received golf fees of $1,800 in cash from customers for golf services performed. 19 Sold 100 coupon books for $20 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 $660 cash dividend. 30 Paid salariesyof $750. 30 Paid Tahoe company in full for equipment purchased on March 10. 31 Received $930 in cash from customers for golf services performed. Journalize the March transactions. Ayayai's records golf fees as service revenue. (If no entry is required, select "No Entry" for the account tities and enter for the amounts Credit account tities are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Credit Date Debit Account Titles and Explanation

Answer 1

JOURNAL Date Particulars 1-Mar Cash Common Stock (Being cash invested) Debit Credit 55500 55500 Date Particulars 18-Mar Cash Service revenue (Being fees received) Debit Credit 1800 1800 2000 3-Mar Land 22500 Building 8710 Equipment 12890 Cash (Being golf course land purchased) 19-Mar Cash Deferred revenue (Being coupon books sold) 2000 44100 660 25-Mar Dividend Cash (Being dividend paid) 660 3 2230 5-Mar Advrtisement expenses Cash (Being amount paid) 2230 5 750 30-Mar Salaries expense Cash (Being salaries paid) 750 7 3 6-Mar Prepaid insurance 3500 Cash (Being insurance policy purchased) 3500 3 4850 30-Mar Accounts payable Cash (Being payment made) 4850 4850 . 2 10-Mar Golf Club Accounts payable (Being purchases made) 4850 930 . 31-Mar Cash Service revenue (Being services rendered) 930 in 10 CL LAT Chic 107 no Chann