BUS3061 Prepare Journal entries

Instructions

Accounts to be used:

Cash.

Prepaid insurance.

Land.

Buildings.

Equipment.

Accounts payable.

Unearned service revenue.

Owner’s capital.

Owner’s drawings.

Service revenue.

Advertising expense.

Salaries and wages expense.

Leave a space between each dated transaction.

May 1 Invested $20,000 cash in the golf course business.

May 3 Purchased Hampstead Golf Land for $15,000 cash. The price includes land $12,000, shed $2,000, and equipment $1,000.

May 5 Paid advertising expenses of $700.

May 6 Paid cash $600 for a one-year insurance policy.

May 10 Purchased golf discs and other equipment for $1,050 from Discs Are Us payable in 30 days.

May 18 Received $1,100 in cash for golf fees earned (service revenue).

May 19 Sold 150 coupon books for $10 each. Each book contains four coupons that enable the holder to play one round of disc golf.

May 25 Withdrew $800 cash for personal use.

May 30 Pay $250 as salaries for part-time employees.

May 30 Paid Discs Are Us the full amount due.

May 31 Received $2,100 cash for fees earned.