Answer:
Blue Spruce's Miniature Golf and Driving Range, Inc.
Journal Entries:
March 1:
Debit Cash Account $58,000
Credit Common Stock $58,000
To record the investment of cash by stockholders.
March 3:
Debit Land $24,900
Debit Building $8,460
Debit Equipment $4,840
Credit Cash Account $38,200
To record the purchase of land, building, and equipment.
March 5:
Debit Advertising Expense $1,940
Credit Cash Account $1,940
To record the payment of advertising expense.
March 6:
Debit Prepaid Insurance $4,750
Credit Cash Account $4,750
To record the prepayment of insurance policy for one year.
March 10:
Debit Golf Clubs and Equipment $5,950
Credit Accounts Payable (Tahoe Company) $5,950
To record the purchase of golf clubs and equipment on account.
March 18:
Debit Cash Account $1,850
Credit Service Revenue $1,850
To record the receipt of golf fees.
March 19:
Debit Cash Account $2,500
Credit Deferred Service Revenue $2,500
To record the sale of 100 coupon books for $25 each.
March 25:
Debit Dividend $540
Credit Cash Account $540
To record the payment of cash dividend.
March 30:
Debit Salaries Expense $850
Credit Cash Account $850
To record the payment of salaries.
March 30:
Debit Accounts Payable (Tahoe Company) $5,950
Credit Cash Account $5,950
To record the payment of cash on account.
March 31:
Debit Cash Account $880
Credit Service Revenue $880
To record the receipt of cash for golf services performed.
Explanation:
The above journal entries are made on a daily basis as business transactions and events take place. Journal entries are the initial records of business transactions and events. They identify the accounts to be debited and the accounts to be credited in the general ledger.
