Bindy Crawford created a corporation providing legal services, Sage Hill Inc., on July 1, 2022. On July 31 the balance sheet showed: Cash $ 5,500; Accounts Receivable $ 4,050; Supplies $ 860; Equipment $ 6,550; Accounts Payable $ 5,750; Common Stock $ 9,250; and Retained Earnings $ 1,960. During August the following transactions occurred. Aug. 1 Collected $ 1,140 of accounts receivable due from customers. 4 Paid $ 2,620 cash for accounts payable due. 9 Performed services worth $ 5,560, of which $ 3,590 is collected in cash and the balance is due in September. 15 Purchased additional office equipment for $ 4,070, paying $ 410 in cash and the balance on account. 19 Paid salaries $ 1,300, rent for August $ 720, and advertising expenses $ 330. 23 Paid a cash dividend of $ 680. 26 Borrowed $ 5,600 from American Federal Bank; the money was borrowed on a 4-month note payable. 31 Incurred utility expenses for the month on account $ 420. SAGE HILL INC. Retained Earnings Statement $ V $ Question 3 of 3 - 13 III Pina Colada's Miniature Golf and Driving Range Inc. was opened on March 1 by Bob Dean. These selected events and transactions occurred during March. Mar. 1 Stockholders invested $ 57,500 cash in the business in exchange for common stock of the corporation. 3 Purchased Snead's Golf Land for $ 48,000 cash. The price consists of land $ 24,700, building $ 9,670, and equipment $ 13,630. (Record this in a single entry.) 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $ 1,280 cash. 6 Paid cash $ 3,000 for a 1-year insurance policy. 10 Purchased golf clubs and other equipment for $5,700 from Tahoe Company, payable in 30 days. 18 Received golf fees of $ 1,250 in cash from customers for golf services performed. 19 Sold 100 coupon books for $ 25 each in cash. Each book contains 10 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.) 25 Paid a $ 560 cash dividend. 30 Paid salaries of $ 740. 30 Paid Tahoe Company in full for equipment purchased on March 10. 31 Received $ 940 in cash from customers for golf services performed. Journalize the March transactions. Pina Colada's records golf fees as service revenue. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (Paid salaries expense) (Paid creditor on account)
