E3-17 (L02) (Transactions of a Corporation, Including Investment and Dividend) Scratch 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 $50,000 cash in the business in exchange for common stock.
3 Purchased Michelle Wie’s Golf Land for $38,000 cash. The price consists of land $10,000, building $22,000, and equipment $6,000. (Make one compound entry.)
5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,600.
6 Paid cash $1,480 for a one-year insurance policy.
10 Purchased golf equipment for $2,500 from Singh Company, payable in 30 days.
18 Received golf fees of $1,200 in cash.
25 Declared and paid a $500 cash dividend.
30 Paid wages of $900.
30 Paid Singh Company in full.
31 Received $750 of fees in cash.
Scratch uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense.
Instructions Journalize the March transactions. (Provide explanations for the journal entries.)