Journalize a series of transactions LO 12 Grandview Park was

Journalize a series of transactions (LO 1,2) Grandview Park was started on April 1 by R. S. Francis and associates. The following selected events and transactions occurred during April. Apr. Stockholders invested $50,000 cash in the business in exchange for common stock. 4Purchased land costing $34,000 for cash. 8Incurred advertising expense of $1,800 on account. 11 Paid salaries to employees $1,500 12 Hired park manager at a salary of S3,500 per month, effective May 1 13 Paid $2,400 cash for a one-year insurance policy 17 Declared and paid a S1,400 cash dividend. 20 Received $5,700 in cash for admission fees 25 Sold 100 coupon books for $30 each. Each book contains 10 coupons that entitle the holder to one admission to the park. 30 Received $8,900 in cash admission fees. 30 Paid $840 on balance owed for advertising incurred on April 8 Grandview uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Service Revenue, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense Instructions Journalize the April transactions

Solution

Answer

Date

Particulars

Dr. $

Cr. $

April 1

Cash

50,000

Common Stock

50,000

(Being Shares Issued)

4

Land

34,000

Cash

34,000

(Being Land Purchased for cash)

8

Advertising Expense

1,800

Accounts payable

1,800

(Being Advertisement expense incurred on account)

11

Salaries and Wages Expense

1,500

Cash

1,500

(Being Salaries paid in cash)

12

NO ENTRY

(As the manager is hired and will join next month. There is no entry for hiring an employee)

13

Prepaid Insurance

2,400

Cash

2,400

(Being Insurance paid in advance)

17

Dividends

1,400

Cash

1,400

(Being dividend declared and paid)

20

Cash

5,700

Service Revenue

5,700

(Being admission fees received in cash)

25

Cash (100 Coupons * $30 each)

3,000

Unearned Service Revenue

3,000

(Being coupons sold in cash)

30

Cash

8,900

Service Revenue

8,900

(Being admission fees received in cash)

30

Accounts Payable

840

Cash

840

(Being cash paid to accounts payable)

Date	Particulars	Dr. $	Cr. $
April 1	Cash	50,000
	Common Stock		50,000
	(Being Shares Issued)
4	Land	34,000
	Cash		34,000
	(Being Land Purchased for cash)
8	Advertising Expense	1,800
	Accounts payable		1,800
	(Being Advertisement expense incurred on account)
11	Salaries and Wages Expense	1,500
	Cash		1,500
	(Being Salaries paid in cash)
12	NO ENTRY (As the manager is hired and will join next month. There is no entry for hiring an employee)
13	Prepaid Insurance	2,400
	Cash		2,400
	(Being Insurance paid in advance)
17	Dividends	1,400
	Cash		1,400
	(Being dividend declared and paid)
20	Cash	5,700
	Service Revenue		5,700
	(Being admission fees received in cash)
25	Cash (100 Coupons * $30 each)	3,000
	Unearned Service Revenue		3,000
	(Being coupons sold in cash)
30	Cash	8,900
	Service Revenue		8,900
	(Being admission fees received in cash)
30	Accounts Payable	840
	Cash		840
	(Being cash paid to accounts payable)