M. Preston

logistic_guy

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\(\displaystyle \text{Frontier Park}\) was started on April \(\displaystyle 1\) by \(\displaystyle \text{M. Preston}\). The following selected events and transactions occurred during April.

\(\displaystyle \bold{1}\) Preston invested \(\displaystyle \$ 35,000\) cash in the business.
\(\displaystyle \bold{4}\) Purchased land costing \(\displaystyle \$ 27,000\) for cash.
\(\displaystyle \bold{8}\) Incurred advertising expense of \(\displaystyle \$ 1,800\) on account.
\(\displaystyle \bold{11}\) Paid salaries to employees \(\displaystyle \$ 1,500\).
\(\displaystyle \bold{12}\) Hired park manager at a salary of \(\displaystyle \$ 4,000\) per month, effective May \(\displaystyle 1\).
\(\displaystyle \bold{13}\) Paid \(\displaystyle \$ 1,650\) cash for a one-year insurance policy.
\(\displaystyle \bold{17}\) Withdrew \(\displaystyle \$ 1,000\) cash for personal use.
\(\displaystyle \bold{20}\) Received \(\displaystyle \$ 6,800\) in cash for admission fees.
\(\displaystyle \bold{25}\) Sold \(\displaystyle 100\) coupon books for \(\displaystyle \$ 25\) each. Each book contains \(\displaystyle 10\) coupons that entitle the holder to one admission to the park.
\(\displaystyle \bold{30}\) Received \(\displaystyle \$ 8,900\) in cash admission fees.
\(\displaystyle \bold{30}\) Paid \(\displaystyle \$ 900\) on balance owed for advertising incurred on April \(\displaystyle 8\).

\(\displaystyle \text{Frontier Park}\) uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Service Revenue, Owner’s Capital, Owner’s Drawings, Service Revenue, Advertising Expense, and Salaries and Wages Expense.

Instructions

Journalize the April transactions.
 
\(\displaystyle \bold{1}\) Preston invested \(\displaystyle \$ 35,000\) cash in the business.
Date​
Account​
Debit​
Credit​
1
Cash​
35,000​
Owner's Capital​
35,000​
 
\(\displaystyle \bold{4}\) Purchased land costing \(\displaystyle \$ 27,000\) for cash.
Date​
Account​
Debit​
Credit​
4
Land​
27,000​
Cash​
27,000​
 
\(\displaystyle \bold{8}\) Incurred advertising expense of \(\displaystyle \$ 1,800\) on account.
Date​
Account​
Debit​
Credit​
8
Advertising Expense​
1,800​
Accounts Payable​
1,800​
 
\(\displaystyle \bold{11}\) Paid salaries to employees \(\displaystyle \$ 1,500\).
Date​
Account​
Debit​
Credit​
11
Salaries and Wages Expense​
1,500​
Cash​
1,500​
 
\(\displaystyle \bold{12}\) Hired park manager at a salary of \(\displaystyle \$ 4,000\) per month, effective May \(\displaystyle 1\).

There is no transaction happened here, so there's no journal.
 
\(\displaystyle \bold{13}\) Paid \(\displaystyle \$ 1,650\) cash for a one-year insurance policy.
Date​
Account​
Debit​
Credit​
13
Prepaid Insurance​
1,650​
Cash​
1,650​
 
\(\displaystyle \bold{17}\) Withdrew \(\displaystyle \$ 1,000\) cash for personal use.
Date​
Account​
Debit​
Credit​
17
Owner's Drawings​
1,000​
Cash​
1,000​
 
\(\displaystyle \bold{20}\) Received \(\displaystyle \$ 6,800\) in cash for admission fees.
Date​
Account​
Debit​
Credit​
20
Cash​
6,800​
Service Revenue​
6,800​
 
\(\displaystyle \bold{25}\) Sold \(\displaystyle 100\) coupon books for \(\displaystyle \$ 25\) each. Each book contains \(\displaystyle 10\) coupons that entitle the holder to one admission to the park.
Date​
Account​
Debit​
Credit​
25
Cash​
2,500​
Unearned Service Revenue​
2,500​
 
\(\displaystyle \bold{30}\) Received \(\displaystyle \$ 8,900\) in cash admission fees.
Date​
Account​
Debit​
Credit​
30
Cash​
8,900​
Service Revenue​
8,900​
 
\(\displaystyle \bold{30}\) Paid \(\displaystyle \$ 900\) on balance owed for advertising incurred on April \(\displaystyle 8\).
Date​
Account​
Debit​
Credit​
30
Accounts Payable​
900​
Cash​
900​
 
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