Question

1. This information relates to Culver Real Estate Agency.

Oct. 1		Stockholders invest $30,240 in exchange for common stock of the corporation.
2		Hires an administrative assistant at an annual salary of $39,600.
3		Buys office furniture for $4,020, on account.
6		Sells a house and lot for E. C. Roads; commissions due from Roads, $10,440 (not paid by Roads at this time).
10		Receives cash of $140 as commission for acting as rental agent renting an apartment.
27		Pays $650 on account for the office furniture purchased on October 3.
30		Pays the administrative assistant $3,300 in salary for October.

Prepare the debit–credit analysis for each transaction. (If there is no transaction, then enter No Effect for the account and 0 for the amount.)

Oct. 1
Oct. 2
Oct. 3
Oct. 6
Oct. 10
Oct. 27
Oct. 30

2.  

Whispering Winds’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 $69,500 cash in the business in exchange for common stock of the corporation.
3		Purchased Snead’s Golf Land for $42,700 cash. The price consists of land $24,000, building $8,580, and equipment $10,120. (Record this in a single entry.)
5		Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,630 cash.
6		Paid cash $4,950 for a 1-year insurance policy.
10		Purchased golf clubs and other equipment for $5,650 from Tahoe Company, payable in 30 days.
18		Received golf fees of $1,850 in cash from customers for golf services performed.
19		Sold 120 coupon books for $15 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 $410 cash dividend.
30		Paid salaries of $740.
30		Paid Tahoe Company in full for equipment purchased on March 10.
31		Received $880 in cash from customers for golf services performed.

Journalize the March transactions. Whispering Winds’s records golf fees as service revenue. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

ANS 1 :- Debit–credit analysis for Culver Real Estate Agency.

DATE ACCOUNT TYPE OF ACCOUNT DEBIT/ CREDIT AMOUNT ($)

OCT   

1 CASH ASSEST DEBIT 30240

COMMON STOCK ASSEST CREDIT 30240

2 NO ENTRY FOR HIRING ADMINISTRATIVE ASSITANT.

3 FURNITURE ASSEST DEBIT 4020

A/C PAYABLE LIABILITY CREDIT 4020

6 A/C RECEVAIBLE ASSEST   DEBIT 10440

COMMISION REVENUE ASSEST CREDIT 10440

10 CASH ASSEST DEBIT   140

COMMISION REVENUE ASSEST CREDIT 140.

27 A/C PAYABLE LIABILITY DEBIT 650

CASH ASSEST CREDIT 650

30 SALARY EXPENCE LIABILITY DEBIT 3300

CASH ASSEST CREDIT 3300

So above are debit - credit analisis for given transation.

ANS 2 :- journal entries

DATE ACCOUNT TITLE L NO DEBIT($) CREDIT($)

MARCH CASH AC $69500

1 TO COMMON STOCK $69500

(TO RECORD ISSUE OF COMMON STOCK )

MARCH LAND A/C $24000

3 BUILDING A/C $8580

EQUIPEMENT A/C $10120

TO CASH A/C $42700

(TO RECORD PURCHASE OF BUILDING , LAND & EQUIPMENT)

MARCH

5 ADVERTISING A/C $1630

TO CASH A/C $1630

(TO RECORD ADVERTISING EXPENSES)

MARCH

6 INSURANCE EXPENSE A/C $4250

TO CASH A/C $4250

(TO RECORD INSURANCE EXPENSE PAID IN CASH)

MARCH

10 EQUIPMENT A/C $5650

TO A/C PAYABLE $5650

( TO RECORD EQUIPMENT PURCHASED ON CREDIT)

MARCH

18 CASH A/C $1850

TO CUSTOMER A/C $1850

(TO RECORD FEE COLLECTION IN CASH)

MARCH

19 NO ENTRY 0

0

MARCH

25 DIVIDAND A/C $410

TO CASH A/C $410

( TO RECORD CASH DIVIDAND PAID)

MARCH

30 SALARY EXPENSE A/C $740

TO CASH A/C $740

(TO RECORD SALARY PAID )

MARCH

30 A/C PAYABLE $5650

TO CASH $5650

(TO RECORD CASH PAID TO EQUIPMENT PURCHSED ON CREDIT)

MARCH

31 CASH A/C $880

TO SERVICE REVENUE $880

(TO RECORD CASH RECEIVE FOR SERVICE GIVEN )