P36B Mountain Biking Corp opened on April 1 The following se

P3-6B Mountain Biking Corp. opened on April 1. The following selected events and transactions occurred during April: Issued common shares for $100,000 cash. Purchased an out-of-use ski hill costing $370,000, paying s60,000 cash and signing a bank loan payable for the balance. The $370,000 purchase price consisted of land $204,000; buildings $121,000; and equipment $45,000. Apr. 1 3 8 Purchased advertising space for $1,800 on account. 10 Paid salaries to employees, $2,800. 13 Hired a park manager at a salary of $4,000 per month, effective May I. 14 Paid $5,500 for a one-year insurance policy 17 Declared and paid $600 of dividends to shareholders. 20 Received $10,600 in cash from customers for admission fees. 30 Paid $1,800 on account for the advertising purchased on April 8. 30 Paid $2,000 of interest on the bank loan. 30 Declared and paid an income tax instalment of $800. Instructions Journalize the transactions.

Solution

Admission Fees A/c Date Particulars Debit Credit April 1 Cash A/c $ 100000 Common Stock A/c $ 100000 (Issued shares for cash) April 3 Land A/c $ 204000 Building A/c $ 121000 Equipment A/c $ 45000 Cash A/c $ 60000 Bank Loan A/c $ 310000 (Purchased hill for cash and by bank loan) April 8 Advertising A/c $ 1800 Accounts Payable a/c $ 1800 (Purchased advertising space on account) April 10 Salaries A/c $ 2800 Cash A/c $ 2800 (Salaries paid on cash) April 13 No entry April 14 Insurance Expenses $ 5500 Cash A/c $ 5500 (Insurance paid) April 17 Dividend A/c $ 600 Cash A/c $ 600 (Dividend paid) April 20 Cash A/c $ 10600