Holz Disc Golf Course was opened on March 1 by Ian Holz. The following selected
ID: 2555522 • Letter: H
Question
Holz Disc Golf Course was opened on March 1 by Ian Holz. The following selected events and transactions occurred during March.
Mar.
1
Invested $20,000 cash in the business.
3
Purchased Rainbow Golf Land for $15,000 cash. The price consists of land $12,000, shed $2,000, and equipment $1,000. (Make one compound entry.)
5
Paid advertising expenses of $900.
6
Paid cash $600 for a one-year insurance policy.
10
Purchased golf discs and other equipment for $1,050 from Stevenson Company payable in 30 days.
18
Received $1,100 in cash for golf fees (Holz records golf fees as service revenue).
19
Sold 150 coupon books for $10 each. Each book contains 4 coupons that enable the holder to play one round of disc golf.
25
Withdrew $800 cash for personal use.
30
Paid salaries of $250.
30
Paid Stevenson Company in full.
31
Received $2,700 cash for golf fees.
Holz Disc Golf uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Unearned Service Revenue, Owner's Capital, Owner's Drawings, Service Revenue, Advertising Expense, and Salaries and Wages Expense.
Journalize the March transactions.
Mar.
1
Invested $20,000 cash in the business.
3
Purchased Rainbow Golf Land for $15,000 cash. The price consists of land $12,000, shed $2,000, and equipment $1,000. (Make one compound entry.)
5
Paid advertising expenses of $900.
6
Paid cash $600 for a one-year insurance policy.
10
Purchased golf discs and other equipment for $1,050 from Stevenson Company payable in 30 days.
18
Received $1,100 in cash for golf fees (Holz records golf fees as service revenue).
19
Sold 150 coupon books for $10 each. Each book contains 4 coupons that enable the holder to play one round of disc golf.
25
Withdrew $800 cash for personal use.
30
Paid salaries of $250.
30
Paid Stevenson Company in full.
31
Received $2,700 cash for golf fees.
Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Mar 1 Cash 20000 Owner's Capital 20000 Mar 3 Land 12000 Building 2000 Equipment 1000 Cash 15000 Mar 5 Advertising expense 900 cash 900 Mar 6 Prepaid insurance 600 Cash 600 Mar 10 Equipment 1050 Account payable 1050 Mar 18 Cash 1100 Service revenue 1100 Mar 19 Cash 1500 Unearned service revenue 1500 Mar 25 Owner's drawings 800 Cash 800 Mar 30 Salary expense 250 Cash 250 Mar 30 Account payable 1050 Cash 1050 Mar 31 Cash 2700 Service revenue 2700Related Questions
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