Question 5
Pharoah Miniature Golf and Driving Range Inc. was opened on March 1 by Michael Wear. These selected events and transactions occurred during March.
| Mar. | 1 | | Shareholders invested $45,800 cash in the business in exchange for common shares of the corporation. |
| | 3 | | Purchased Arnie's Golf Land for $36,200 cash. The price consists of land $21,100, building $9,000, and equipment $6,100. |
| | 5 | | Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,800 cash. |
| | 6 | | Paid cash $2,300 for a 1-year insurance policy. |
| | 10 | | Purchased golf clubs and other equipment for $4,200 from Golden Bear Company, payable in 30 days. |
| | 18 | | Received golf fees of $1,000 in cash from customers for golf fees earned. |
| | 19 | | Sold 100 coupon books for $27 each in cash. Each book contains ten coupons that enable the holder to play one round of miniature golf or to hit one bucket of golf balls. (Hint: The revenue is not earned until the customers use the coupons.) |
| | 25 | | Declared and paid a $460 cash dividend. |
| | 30 | | Paid salaries of $700. |
| | 30 | | Paid Golden Bear Company in full for equipment purchased on March 10. |
| | 31 | | Received $820 in cash from customers for golf fees earned. |
| | 31 | | Paid estimated income taxes for the month amounting to $100. |
The company uses these accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Unearned Revenue, Common Shares, Retained Earnings, Dividends Declared, Service Revenue, Advertising Expense, Salaries Expense, and Income Tax Expense. Prepare journal entries to record the March transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
| DATE | Account Titles and Explanation | Debit | Credit |
| *insert date* | | | |
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| MAR 3 | | | |
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| *insert date* | | | |
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| *insert date* | | | |
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| *insert date* | | | |
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| *insert date* | | | |
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| *insert date* | | | |
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| *insert date* | | | |
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| *insert date* | | | |
| __________ | __________________________ | _____ | _____ |
| (To record payment of salaries) |
| DATE | Account Titles and Explanation | DEBIT | CREDIT |
| *insert date* | | | |
| | | | |
| (To record payment of equipment purchased) |
| DATE | Account Titles and Explanation | DEBIT | CREDIT |
| *insert date* | | | |
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| (To record cash received from customers) |
| DATE | Account Titles and Explanation | DEBIT | CREDIT |
| *insert date* | | | |
| | | | |
| (To record payment of income tax) |
| DATE | Account Titles and Explanation | DEBIT | CREDIT |
| *insert date* | | | |
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