Question

Exercise 3-17 Blue Miniature Golf and Driving Range Inc. was opened on March 1 by Scott Verplank. The following selected events and transactions occurred during March. Mar. 1 Invested $54,900 cash in the business in exchange for common stock 3 Purchased Michelle Wie's Golf Land for $37,490 cash. The price consists of land $9,980, building $21,730, and equipment $5,780. (Make one compound entry.) 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,721. 6 Paid cash $1.575 for a one-year Insurance policy. 10 Purchased golf equipment for $2,380 from Singh Company, payable in 30 days. 18 Received golf fees of $1,243 in cash. 25 Declared and paid a $460 cash dividend. 30 Paid wages of $857. 30 Paid Singh Company in full. 31 Received $814 of fees in cash. Blue uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Common Stock Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense. Journalize the March transactions. (Use Service Revenue account to record fees.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.)

Answer 1

Journal Entries:

Date	Account title and Explanation	Debit	Credit
Mar.1	Cash	$54,900
	Common stock		$54,900
	[To record issuance of common stock]
Mar.3	Land	$9,980
	Building	$21,730
	Equipment	$5,780
	Cash		$37,490
	[To record purchase of Golf land]
Mar.5	Advertising expense	$1,721
	Cash		$1,721
	[To record payment of advertisement expense]
Mar.6	Prepaid insurance	$1,575
	Cash		$1,575
	[To record payment of insurance in advance]
Mar.10	Equipment	$2,380
	Notes payable		$2,380
	[To record purchase of equipment]
Mar.18	Cash	$1,243
	Service revenue		$1,243
	[To record cash received for services]
Mar.25	Cash dividends	$460
	Cash		$460
	[To record payment of cash dividends]
Mar.30	Salaries and Wages expense	$857
	Cash		$857
	[To record payment of wages]
Mar.30	Notes payable	$2,380
	Cash		$2,380
	[To record cash paid for notes payable]
Mar.31	Cash	$814
	Service revenue		$814
	[To record cash received for services]