Question

Problem 3-04A Bridgeport's Miniature Golf and Owing Range Inc. was opened on March 1 by Bob Dean. These selected events and transactions occurred during March MM. 1 Stockholders invested 167,000 cash in the business in exchange for common wock of the corporation 3 Purchased Sead's Golf Land for $39,200 cash. The price consists of land 524,000, building 59,270, and equipment 55,030. Record this in a single entry) 5 Advertised the opening of the driving range and miniature golf course, paying adverting expenses of $2.990 cash 6 Paid cash 54.350 for a 1-year inwrance policy. 10 Purchased golf clubs and other equipment for 55.600 from The Company, payable in 30 days. 18 Received gottees of 51.100 in Cos from customers for golf services performed 19 Sold 145 coupon books for $25 euch in cash. Each book contains 10 coupons that enable the holder to play one round of miniatur one bucket of of bals. customers use the coupons.) 25 Paida 1410 th dividend 30 Paid salaries of 5900. 30 Pad The Company inform ant purchased on March 10 31 Received 960 in cash from customers for golf services performed Ai The revenue should not be recognized uncl the Date Account Titles and planation

Answer 1

Problem 3-04A:

In the books of Bridgeport's -

Date	Accounts and Explanation	Debit	Credit
Mar,1	Cash A/c                                        Dr	$67,000
	To Common stock A/c		$67,000
	(Being cash invested in the corporation in exchange of common stock)

Mar,3	Land A/c                                         Dr	$24,000
	Buildings A/c                               Dr	$9,270
	Equipment A/c                            Dr	$6,030
	To Cash A/c		$39,300
	(Being assets purchased for cash)

Mar,5	Advertising Expense A/c               Dr	$2,990
	To Cash A/c		$2,990
	(Being Advertising Expense incurred)

Mar,6	Insurance Expense A/c                   Dr	$3,625
	Prepaid Insurance A/c                     Dr	$725
	To Cash A/c		$4,350
	(Being the 1-year insurance apportioned)

Mar,10	Purchase A/c                                      Dr	$5,600
	To Tahoe company A/c		$5,600
	(Being other equipment purchased, payable in 30 days)

Mar,18	Cash A/c                                              Dr	$1,100
	To Service Income A/c		$1,100
	(Being revenue received for services performed)

Mar,19	Cash A/c                                            Dr	$3,625
	To Coupons issued A/c		$3,625
	(Being 145 coupon books of each $25 issued)

Mar,25	Service Income A/c               Dr	$490
	To Dividend payable A/c		$490
	(Being Dividend payable apportioned)

Mar,25	Dividend payable A/c              Dr	$490
	To Cash A/c		$490
	(Being Dividend paid)

Mar,30	Salaries A/c                            Dr	$900
	To Cash A/c		$900
	(Being Salaries expense paid)

Mar,30	Tahoe company A/c           Dr	$5,600
	To Cash A/c		$5,600
	(Being payment made to account payable)

Mar,31	Cash A/c                     Dr	$960
	To Service Income A/c		$960
	(Being revenue received for services performed)

Note: It is assumed that other equipment purchased is normal purchases made as it is payable within 30 days.

Coupons issued for future purchase by customers will impact future sales made by us, until then cash received on sale of such coupons should be accounted normal receipt of cash. And coupons issued will be used against set off of future income.