P2-1A Frontier Park was started on April 1 by C. J. Mendez and associates. The following se
Question:
P2-1A Frontier Park was started on April 1 by C. J. Mendez and associates. The following seĀ¬
lected events and transactions occurred during April.
Apr. 1 4
8 11 12 13 17 20 25 30 30 Stockholders invested $40,000 cash in the business in exchange for common stock.
Purchased land costing $30,000 for cash.
Incurred advertising expense of $1,800 on account.
Paid salaries to employees $1,500.
Hired park manager at a salary of $4,000 per month, effective May 1.
Paid $1,500 cash for a one-year insurance policy.
Declared and paid a $1,000 cash dividend.
Received $5,700 in cash for admission fees.
Sold 100 coupon books for $25 each. Each book contains 10 coupons that entitle the holder to one admission to the park.
Received $8,900 in cash admission fees.
Paid $900 on balance owed for advertising incurred on April 8.
Journalize a series of transactions.
(SO 2, 4)
I
\
Mendez uses the following accounts: Cash; Prepaid Insurance; Land; Accounts Payable;
Unearned Admission Revenue; Common Stock; Dividends; Admission Revenue; Advertising Expense; and Salaries Expense.
Step by Step Answer:
Financial Accounting
ISBN: 9780470128848
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso