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Journalizing Transactions and Trial Balance

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.

SLOCOMBE COMPANY
Trial Balance

September 30, 2012

Debit ($)

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

Credit

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.

Solution Summary

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

$2.19