Problem - Friendley's Miniature Golf and Driving Range Inc. was opened on March 1 by Dean Barley. These selected events and transactions occurred during March.
Journalize the March transactions. Friendley's records golf fees as service revenue.
Mar. 1 Stockholders invested $57,100 cash in the business in exchange for common stock of the corporation.
Mar. 3 Purchased Arnie's Golf Land for $39,800 cash. The price consists of land $23,400, building $8,310, and equipment $8,090. (Record this in a single entry.)
Mar. 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,400 cash.
Mar. 6 Paid cash $4,000 for a 1-year insurance policy.
Mar. 10 Purchased golf clubs and other equipment for $4,710 from Golden Bear Company, payable in 30 days.
Mar. 18 Received golf fees of $1,750 in cash from customers for golf services performed.
Mar. 19 Sold 150 coupon books for $20 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 should not be recognized until the customers use the coupons.)
Mar. 25 Paid a $430 cash dividend.
Mar. 30 Paid salaries of $890.
Mar. 30 Paid Golden Bear Company in full for equipment purchased on March 10.
Mar. 31 Received $970 in cash from customers for golf services performed.