Income statement and Balance Sheet. Journalize the March transactions.
(1) Four Oaks Minature Golf and Driving Range Inc. was opened on March 1 by Tiger Woodley. These selected events and transactions occurred during March.
Stockholders invested $50,000 cash in the business in exchange for common stock of the corporation.
Purchased Arnie's Golf Land for $38,000 cash. The price consists of land $23,000, building $9,000, and equipment $6,000. (Record this in a single entry.)
Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,600 cash.
Paid cash $2,400 for a 1-year insurance policy.
Purchased golf clubs and other equipment for $4,700 from Golden Bear Company, payable in 30 days.
Received golf fees of $1,200 in cash from customers for golf fees earned.
Sold 100 coupon books for $25 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 is not earned until the customers use the coupons.)
Paid a $500 cash dividend.
Paid salaries of $700.
Paid Golden Bear Company in full for equipment purchased on March 10.
Received $800 of fees in cash from customers for golf fees earned.
(2) This is the trial balance of Slocombe Company on September 30.
September 30, 2012
Cash : 8,300
Accounts Receivable : 2,600
- Total: $21,000
Accounts Payable: $5,100
Unearned Revenue: 900
Common Stock: 15,000
- Total: $21,000
The October transactions were as follows.
Received $1,300 in cash from customers for accounts receivable due.
Billed customers for services performed $5,100.
Paid employee salaries $1,400.
Performed $600 of services for customers who paid in advance in August.
Paid $1,500 to creditors for accounts payable due.
Paid a $300 cash dividend.
Paid utilities $500.
A selection of journalized entries for two months and their respective trial balances.