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    Journalizing Transactions and Trial Balance

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    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.

    Mar. 1
    Stockholders invested $50,000 cash in the business in exchange for common stock of the corporation.

    Mar. 3
    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.)

    Mar. 5
    Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,600 cash.

    Mar. 6
    Paid cash $2,400 for a 1-year insurance policy.

    Mar. 10
    Purchased golf clubs and other equipment for $4,700 from Golden Bear Company, payable in 30 days.

    Mar. 18
    Received golf fees of $1,200 in cash from customers for golf fees earned.
    Mar. 19
    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.)

    Mar. 25
    Paid a $500 cash dividend.

    Mar. 30
    Paid salaries of $700.
    Paid Golden Bear Company in full for equipment purchased on March 10.

    Mar. 31
    Received $800 of fees in cash from customers for golf fees earned.

    (2) This is the trial balance of Slocombe Company on September 30.

    Trial Balance

    September 30, 2012

    Debit ($)

    Cash : 8,300
    Accounts Receivable : 2,600
    Supplies: 2,100
    Equipment: 8,000
    - Total: $21,000


    Accounts Payable: $5,100
    Unearned Revenue: 900
    Common Stock: 15,000
    - Total: $21,000

    The October transactions were as follows.

    Oct. 5
    Received $1,300 in cash from customers for accounts receivable due.

    Oct. 10
    Billed customers for services performed $5,100.

    Oct. 15
    Paid employee salaries $1,400.

    Oct. 17
    Performed $600 of services for customers who paid in advance in August.

    Oct. 20
    Paid $1,500 to creditors for accounts payable due.

    Oct. 29
    Paid a $300 cash dividend.

    Oct. 31
    Paid utilities $500.

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    Solution Summary

    A selection of journalized entries for two months and their respective trial balances.