The Arid Sands Golf Club was opened for business on 1 July by Todd Simpson. The following

Question:

The Arid Sands Golf Club was opened for business on 1 July by Todd Simpson. The following selected events and transactions occurred during the first month of operations:

July

The owner invested $2500000 cash into the business.

Acquired the business of Jeffrey’s Golf World for $1800000 cash. The price consisted of land $1000000, building $650000, and equipment

$150000.

Advertised the opening of the golf course, paying advertising expenses of $36000 for a major television campaign.

Paid cash $36000 for a 1-year insurance policy.

Purchased new golfing equipment for $60 000 from Rory Golfing, payable in 30 days.

Received golf membership fees of $22000 in cash.

Sold 200 coupon books for $400 each. Every book contains 10 coupons each of which entitles the holder to one round of golf.

Simpson withdrew $10 000 cash for personal use.

Paid wages of $12 600.

Paid Rory Golfing in full.

Received $12000 cash for golf fees.

Required

Prepare general journal entries for the month of July, using appropriate account titles. Ignore GST.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...

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