M. Preston

[logistic_guy]

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

Apr.
$\displaystyle \bold{1}$ 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 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 $\displaystyle 8$.

Instructions
Journalize the April transactions.

 

[logistic_guy]

$\displaystyle \bold{1}$ Preston invested $\displaystyle \$ 35,000$ cash in the business.

1​	Account​	Debit​	Credit​
	Cash​	35,000​	​
	Owner's Capital​	​	35,000​

 

[logistic_guy]

$\displaystyle \bold{4}$ Purchased land costing $\displaystyle \$ 27,000$ for cash.

4​	Account​	Debit​	Credit​
	Land​	27,000​	​
	Cash​	​	27,000​

 

[logistic_guy]

$\displaystyle \bold{8}$ Incurred advertising expense of $\displaystyle \$ 1,800$ on account.

8​	Account​	Debit​	Credit​
	Advertising Expense​	1,800​	​
	Accounts Payable​	​	1,800​

 

[logistic_guy]

$\displaystyle \bold{11}$ Paid salaries to employees $\displaystyle \$ 1,500$.

11​	Account​	Debit​	Credit​
	Salaries and Wages Expense​	1,500​	​
	Cash​	​	1,500​

 

[logistic_guy]

$\displaystyle \bold{12}$ Hired park manager at a salary of $\displaystyle \$ 4,000$ per month, effective May $\displaystyle 1$.

No journal entry is required.

 

[logistic_guy]

$\displaystyle \bold{13}$ Paid $\displaystyle \$ 1,650$ cash for a one-year insurance policy.

13​	Account​	Debit​	Credit​
	Prepaid Insurance​	1,650​	​
	Cash​	​	1,650​

 

[logistic_guy]

$\displaystyle \bold{17}$ Withdrew $\displaystyle \$ 1,000$ cash for personal use.

17​	Account​	Debit​	Credit​
	Owner's Drawings​	1,000​	​
	Cash​	​	1,000​

 

[logistic_guy]

$\displaystyle \bold{20}$ Received $\displaystyle \$ 6,800$ in cash for admission fees.

20​	Account​	Debit​	Credit​
	Cash​	6,800​	​
	Service Revenue​	​	6,800​

 

[logistic_guy]

$\displaystyle \bold{25}$ Sold 100 coupon books for $\displaystyle \$ 25$ each. Each book contains $\displaystyle 10$ coupons that entitle the holder to one admission to the park.

25​	Account​	Debit​	Credit​
	Cash​	2,500​	​
	Unearned Service Revenue​	​	2,500​

 

[logistic_guy]

$\displaystyle \bold{30}$ Received $\displaystyle \$ 8,900$ in cash admission fees.

30​	Account​	Debit​	Credit​
	Cash​	8,900​	​
	Service Revenue​	​	8,900​

 

[logistic_guy]

$\displaystyle \bold{30}$ Paid $\displaystyle \$ 900$ on balance owed for advertising incurred on April $\displaystyle 8$.

30​	Account​	Debit​	Credit​
	Accounts Payable​	900​	​
	Cash​	​	900​