Question

PROBLEMS: SET A Journalise a series of Transactions. (LO 1,2) GLS P2-1A Holz Disc Golf Course was opened on March 1 by lan 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. Instructions Journalize the March transactions.

Answer 1

Solution: Journal Entries

(Amounts in $)

Date	Particulars	Debit	Credit
March 01	Cash A/c          Dr.       To Owner’s Capital A/c (Being capital invested in the business)	20,000	20,000
March 03	Land A/c                    Dr. Building A/c               Dr. Equipment A/c           Dr.       To Cash A/c (Being land, shed and equipment purchased)	12,000 2,000 1,000	15,000
March 05	Advertising Expenses A/c         Dr.            To Cash A/c (Being advertising expenses paid)	900	900
March 06	Prepaid Insurance A/c              Dr.          To Cash A/c (Being payment for 1-year insurance policy made)	600	600
March 10	Equipment A/c               Dr.        To Accounts Payable (Stevenson) A/c (Being equipment purchased on 30 days of credit)	1,050	1,050
March 18	Cash A/c               Dr.       To Service Revenue A/c (Being golf fees has been received)	1,100	1,100
March 19	Cash A/c             Dr.         To Unearned Service Revenue A/c (Being 150 coupon book sold for $10 each)	1,500	1,500
March 25	Cash A/c              Dr.      To Owner’s Drawings A/c (Being cash withdrawn for personal use)	800	800
March 30	Salaries and Wages Expenses A/c      Dr.       To Cash A/c (Being salaries paid)	250	250
March 30	Accounts Payable (Stevenson) A/c         Dr.         To Cash A/c (Being Stevenson co. paid full)	1,050	1,050
March 31	Cash A/c             Dr.         To Service Revenue A/c (Being golf fees received)	2,700	2,700

Answer 2

On March 31 owner's drawings to be recorded Dr and Cash recorded Cr