Frontier Park was started on April 1 by H. Hillenmeyer. The following selected e
ID: 2346820 • Letter: F
Question
Frontier Park was started on April 1 by H. Hillenmeyer. The following selected events and transactions occurred during April.Apr. 1 Hillenmeyer invested $41,410 cash in the business.
4 Purchased land costing $29,754 for cash.
8 Incurred advertising expense of $1,370 on account.
11 Paid salaries to employees $1,632.
12 Hired park manager at a salary of $3,733 per month, effective May 1.
13 Paid $1,230 cash for a one-year insurance policy.
17 Withdrew $1,431 cash for personal use.
20 Received $5,191 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 $9,138 in cash admission fees.
30 Paid $731 on balance owed for advertising incurred on April 8.
Hillenmeyer uses the following accounts: Cash; Prepaid Insurance; Land; Accounts Payable; Unearned Revenue; H. Hillenmeyer Capital; H. Hillenmeyer Drawing; Admission Revenue; Advertising Expenses; and Salaries Expense.
Instructions
Journalize the April transactions. (If there is no transaction, enter No entry as the account and 0 for the amount.)
Date Account/Description Debit Credit
Apr. 1
(Owner's investment of cash in business.)
Apr. 4
(Purchased land for cash.)
Apr. 8
(Incurred advertising expense on account.)
Apr. 11
(Paid salaries.)
Apr. 12
(Hired park manager.)
Apr. 13
(Paid for one-year insurance policy.)
Apr. 17
(Withdrew cash for personal use.)
Apr. 20
(Received cash for services provided.)
Apr. 25
(Received cash for future services.)
Apr. 30
(Received cash for services provided.)
Apr. 30
(Paid creditor on account.)
Explanation / Answer
Journalize the April transactions. (If there is no transaction, enter No entry as the account and 0 for the amount.)
Date Account/Description Debit Credit
Apr. 1 Cash $41,410
H. Hillenmeyer Capital $41,410
(Owner's investment of cash in business.)
______________________________________________
Apr. 4 Land $29,754
Cash $29,754
(Purchased land for cash.)
______________________________________________
Apr. 8 Advertising expense $1,370
Advertising Expense payable $1,370
(Incurred advertising expense on account.)
______________________________________________
Apr. 11 Salaries $1,632
Cash $1,632
(Paid salaries.)
______________________________________________
Apr. 12 No Entry 0
No Entry 0
(Hired park manager.)
______________________________________________
Apr. 13 Prepaid Insurance $1,172.31
Insurance Expense $57.29 ($1,230 x 17days/365)
Cash $1,230
(Paid for one-year insurance policy.)
______________________________________________
Apr. 17 Drawings $1,431
Cash $1,431
(Withdrew cash for personal use.)
_______________________________________________
Apr. 20 Cash $5,191
Admission Fees $5,191
(Received cash for services provided.)
_______________________________________________
Apr. 25 Cash $3,000
Unearned Revenue $3,000
(Received cash for future services.)
_______________________________________________
Apr. 30 Cash $9,138
Admission Fees $9,138
(Received cash for services provided.)
_______________________________________________
Apr. 30 Advertising Expense payable $731
Cash $731
(Paid creditor on account.)
________________________________________________
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