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
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
1The owner invested $2 500 000 cash into the business.
3
Acquired the business of Jeffrey's Golf World for $1 800 000 cash. The price consisted of land
$1 000 000, building $650 000, and equipment $150 000.
6
Advertised the opening of the golf course, paying advertising expenses of $36 000 for a major television campaign.
10Paid cash $36 000 for a 1-year insurance policy.
18Purchased new golfing equipment for $60 000 from Rory Golfing, payable in 30 days.
19Received golf membership fees of $22 000 in cash.
25
Sold 200 coupon books for $400 each. Every book contains 10 coupons each of which entitles the holder to one round of golf.
27Simpson withdrew $10 000 cash for personal use.
29Paid wages of $12 600.
30Paid Rory Golfing in full.
31Received $12 000 cash for golf fees.
Prepare general journal entries for the month of July, using appropriate account titles. Assume that a GST of 10% needs to be added for all appropriate transactions.
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