Question

Journalize the March transactions. Use only accounts from the company's chart of accounts, which are cash, accounts receivable, prepaid insurance, equipment, accumulated depreciation-equipment, accounts payable, salaries payable, unearned service revenue, common stock, retained earnings, dividends, income summary, service revenue, salaries expense, utilities expense, insurance expense and depreciation expense. Omit journal entry descriptions.

Mar. 2 Stockholders invested $68,500 cash in the business in exchange for common stock of the corporation.

Mar. 3 Purchased equipement for $42,800 cash.

Mar. 6 Purchased a $2,700 1-year insurance policy on account.

Mar. 19 Sold 100 coupon books for $150 each in cash. Each book contains coupons that enable the holder to play one round of miniature golf or to hit one bucket of golf balls

Mar. 20 Received the month's utility bill for $780.

Mar. 25 Paid a $600 cash dividend.

Mar. 30 Performed golf services totaling $8,000 for customers on account.

31 1/12th of the insurance policy expired.

31 Equipment is depreciated at 1/10th of cost with no salvage value

31 36 coupon books were redeemed by customers during the month.

31 Accrued salaries are $2,230

[hint: totals = $101,490 for adjusted trial balance]

Answer 1

Date	Accounts Titles and Explanation	Debit	Credit
March 2	Cash a/c	68,500
	Common Stock a/c		$68,500
March 3	Equipment a/c	$42,800
	Cash a/c		$42,800
March 6	Prepaid Insurance a/c	$2,700
	Cash a/c		$2,700
March 19	Cash a/c [100 x $150]	$15,000
	Unearned Service revenue a/c		$15,000
March 20	Utilities expense	$780
	Accounts payable a/c		$780
March 25	Dividends a/c	$600
	Cash a/c		$600
March 30	Accounts receivable a/c	$8,000
	Service revenue a/c		$8,000
March 31	Insurance expense a/c [Note 1]	$225
	Prepaid Insuracne a/c		$225
March 31	Depreciation expense [Note 2]	$4,280
	Accumulated depreciation-equipment		$4,280
March 31	Unearned Service revenue a/c [36 x $150]	$5,400
	Service revenue		$5,400
March 31	Salaries Expenses a/c	$2,230
	Salary payable a/c		$2,230

Note 1 - Insurance Expense

Total Insurance premium for 12 months = $2,700

Insurance Premium for the month March = $2,700 ÷ 12 = $225

Note 2 - Depreciation Expense

Total Equipment cost = $42,800

Depreciation for month march = $42,800 ÷ 10 = $4,280