Question

5 Problem 2-01A Holz Disc Golf Course was opened on March 1 by Ian 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) Pald advertising expenses of $900. Pald cash $600 for a one-year Insurance policy 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. Pald salaries of $250. 30 Pald Stevenson Company in full. 31 Received $2,700 cash for golf fees. 6 10 30 Journalize the March transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal for the account titles and enter o for the amounts.)

Answer 1

Answer :-

Date	Account Titles and explanations	Debit	Credit
Mar 1	Cash	$20,000
	Owner's Capital		$20,000
Mar 3	Land	$12,000
	Shed	$2,000
	Equipment	$1,000
	Cash		$15,000
Mar 5	Adverising Expenses	$ 900
	Cash		$ 900
Mar 6	Prepaid Insurance	$600
	Cash		$600
Mar 10	Equipment	$   1,050
	Accounts payable - Stevenson Company		$   1,050
Mar 18	Cash	$ 1,100
	Service Revenue		$ 1,100
Mar 19	Cash	$1,500
	Unearned Service Revenue		$ 1,500
	(No. of Sold Coupon × Each coupon rate = 150 × $10 = $1500)
Mar 25	Owner's Drawing	$800
	Cash		$800
Mar 30	Salaries Expenses	$250
	Cash		$250
	( Paid Salaries )
Mar 30	Accounts Payable - Stevenson Company	$1,050
	Cash		$ 1,050
	(Paid Creditors on Account)
Mar 31	Cash	$ 2,700
	Service Revenue		$ 2,700