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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.