Friendley\'s Miniature Golf and Driving Range Inc. was opened on March 1 by Dean

Question

Friendley's Miniature Golf and Driving Range Inc. was opened on March 1 by Dean Barley. These selected events and transactions occurred during March.

Journalize the March transactions. Friendley's records golf fees as service revenue. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Mar. 3

Mar. 1 Stockholders invested $52,400 cash in the business in exchange for common stock of the corporation. 3 Purchased Arnie’s Golf Land for $41,100 cash. The price consists of land $22,800, building $8,500, and equipment $9,800. (Record this in a single entry.) 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $2,330 cash. 6 Paid cash $2,530 for a 1-year insurance policy. 10 Purchased golf clubs and other equipment for $5,100 from Golden Bear Company, payable in 30 days. 18 Received golf fees of $1,330 in cash from customers for golf services performed. 19 Sold 120 coupon books for $10 each in cash. Each book contains ten 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 $650 cash dividend. 30 Paid salaries of $720. 30 Paid Golden Bear Company in full for equipment purchased on March 10. 31 Received $910 in cash from customers for golf services performed.

Explanation / Answer

Journal Entries for the month ended March 31

Date

Particulars

Debit

Credit

Mar-01

Cash a/c                                                            Dr

$52400

      To Common Stock a/c

$52400

[Investment of cash by shareholders]

Mar-03

Land a/c                                                            Dr

$22800

Building a/c                                                     Dr

$8500

Equipment a/c                                               Dr

$9800

      To Cash a/c

$41100

[Purchase of land, building and equipment for cash]

Mar-05

Advertising Expense a/c                            Dr

$2330

     To Cash a/c

$2330

[Paid for Advertising Expense]

Mar-06

Insurance Premium a/c                              Dr

$2530

     To Cash a/c

$2530

[Paid for 1year Insurance Policy]

Mar-10

Equipment a/c                                                 Dr

$5100

    To Accounts Payable a/c

$5100

[Purchased Equipment payable in 30 days]

Mar-18

Cash a/c                                                              Dr

$1330

     To Fees Received

$1330

[Fees received for the services performed]

Mar-19

Cash a/c (120 * 10)                                           Dr

$1200

      To Fees Received in advance

$1200

[Sale of Coupon books]

Mar-25

Dividend a/c                                                        Dr

$650

     To Cash a/c

$650

[Paid for cash dividend]

Mar-30

Salaries a/c                                                          Dr

$720

      To Cash a/c

$720

[Paid for Salaries]

Accounts Payable a/c                                      Dr

$5100

      To Cash a/c

$5100

[Paid to accounts payable]

Mar-31

Cash a/c                                                              Dr

$910

     To Fees Received

$910

[Fees received for the services performed]

Journal Entries for the month ended March 31

Date

Particulars

Debit

Credit

Mar-01

Cash a/c                                                            Dr

$52400

      To Common Stock a/c

$52400

[Investment of cash by shareholders]

Mar-03

Land a/c                                                            Dr

$22800

Building a/c                                                     Dr

$8500

Equipment a/c                                               Dr

$9800

      To Cash a/c

$41100

[Purchase of land, building and equipment for cash]

Mar-05

Advertising Expense a/c                            Dr

$2330

     To Cash a/c

$2330

[Paid for Advertising Expense]

Mar-06

Insurance Premium a/c                              Dr

$2530

     To Cash a/c

$2530

[Paid for 1year Insurance Policy]

Mar-10

Equipment a/c                                                 Dr

$5100

    To Accounts Payable a/c

$5100

[Purchased Equipment payable in 30 days]

Mar-18

Cash a/c                                                              Dr

$1330

     To Fees Received

$1330

[Fees received for the services performed]

Mar-19

Cash a/c (120 * 10)                                           Dr

$1200

      To Fees Received in advance

$1200

[Sale of Coupon books]

Mar-25

Dividend a/c                                                        Dr

$650

     To Cash a/c

$650

[Paid for cash dividend]

Mar-30

Salaries a/c                                                          Dr

$720

      To Cash a/c

$720

[Paid for Salaries]

Accounts Payable a/c                                      Dr

$5100

      To Cash a/c

$5100

[Paid to accounts payable]

Mar-31

Cash a/c                                                              Dr

$910

     To Fees Received

$910

[Fees received for the services performed]

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