Question

Monty Corp. was started on April 1 by R. S. Francis and associates. The following selected events and transactions occurred during April Apr. 

Apr. 1 Stockholders invested $ 49,300 cash in the business in exchange for common stock.

4 Purchased land costing $ 29,300 for cash.

8 Incurred advertising expense of $ 1,860 on account.

11 Paid salaries to employees $ 1,950.

12. Hired park manager at a salary of $ 5,000 per month, effective May 1 .

13 Paid $ 1,120 cash for a one-year insurance policy.

17 Declared and paid a $ 1,600 cash dividend.

20 Received $ 5,900 in cash for admission fees.

25 Sold 196 coupon books for $ 32 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 $ 610 on balance owed for advertising incurred on April 8.

Monty uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Service Revenue, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense.

Journalize the April transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the omounts.)

Answer 1

Solution:

Date	Account Name	Debit	Credit
Apr. 1	Cash	$ 49,300
	Common Stock		$ 49,300
	( To record common stock issue)
Apr. 4	Land	$ 29,300
	Cash		$ 29,300
	( To record purchase of land)
Apr. 8	Advertising Expense	$    1,860
	Accounts Payable		$    1,860
	( To record advertising expense)
Apr. 11	Salaries and Wages Expense	$    1,950
	Cash		$    1,950
	( To record salary expense paid)
Apr. 12	No Journal Entry Required	$          -
			$          -
Apr. 13	Prepaid Insurance	$    1,120
	Cash		$    1,120
	( To record prepaid insurance)
Apr. 17	Cash Dividend	$    1,600
	Cash		$    1,600
	( To record dividend paid)
Apr. 20	Cash	$    5,900
	Service Revenue		$    5,900
	( To record service revenue)
Apr. 25	Cash [196*32]	$    6,272
	Unearned Service Revenue		$    6,272
	( To record Unearned sales revenue)
Apr. 30	Cash	$    8,900
	Service Revenue		$    8,900
	( Received cash for services provided)
Apr. 30	Accounts Payable	$       610
	Cash		$       610
	(Paid creditor on account)