Question

Exercise 3-17

Skysong Miniature Golf and Driving Range Inc. was opened on March 1 by Scott Verplank. The following selected events and transactions occurred during March.

Mar. 1		Invested $51,400 cash in the business in exchange for common stock.
3		Purchased Michelle Wie’s Golf Land for $37,580 cash. The price consists of land $10,770, building $20,230, and equipment $6,580. (Make one compound entry.)
5		Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,526.
6		Paid cash $1,395 for a one-year insurance policy.
10		Purchased golf equipment for $2,540 from Singh Company, payable in 30 days.
18		Received golf fees of $1,081 in cash.
25		Declared and paid a $500 cash dividend.
30		Paid wages of $869.
30		Paid Singh Company in full.
31		Received $713 of fees in cash.

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

Journalize the March transactions. (Use Service Revenue account to record fees.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Answer 1

Date	General Journal	Debit	Credit
Mar. 1	Cash	51400
	Common stock		51400
	(To record cash invested for common stock)
3	Land	10770
	Building	20230
	Equipment	6580
	Cash		37580
	(To record assets purchased for cash)
5	Advertising expense	1526
	Cash		1526
	(To record advertising expenses paid)
6	Prepaid insurance	1395
	Cash		1395
	(To record prepaid insurance)
10	Equipment	2540
	Accounts payable		2540
	(To record golf equipment purchased on account)
18	Cash	1081
	Service revenue		1081
	(To record golf fees received)
25	Dividends	500
	Cash		500
	(To record cash dividends paid)
30	Salaries and wages expense	869
	Cash		869
	(To record wages paid)
30	Accounts payable	2540
	Cash		2540
	(To record payment on account)
30	Cash	713
	Service revenue		713
	(To record service revenue received)