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

Journal Entries
Date	Accounts Title and Explaination	Debit	Credit
2-Mar	Cash	$ 68,500.00
	Common Stock		$ 68,500.00
3-Mar	Equipment	$ 42,800.00
	Cash		$ 42,800.00
6-Mar	Prepaid Insurance	$    2,700.00
	Cash		$    2,700.00
19-Mar	Cash	$ 15,000.00
	Unearned Revenue		$ 15,000.00
20-Mar	Utility Expense	$        780.00
	Accrued Expenses		$        780.00
25-Mar	Dividends	$        600.00
	Cash		$        600.00
30-Mar	Accounts receivable	$    8,000.00
	Service Revenue		$    8,000.00
31-Mar	Insurance Expense	$        225.00
	Prepaid Insurance		$        225.00
31-Mar	Depreciation Expense-Equipment	$    4,280.00
	Accumulated Depreciation-Equipment		$    4,280.00
31-Mar	Unearned Revenue	$    5,400.00
	Service Revenue		$    5,400.00
31-Mar	Salaries expense	$    2,230.00
	Salaries Payable		$    2,230.00

Accounting Equation
Assets				Liabilities			Shareholder's Equity
Cash	Equipment	Prepaid Insurance	Accounts Receivable	Unearned Revenue	Accrued expense	Accumulated Depreciation-Equipment	Common Stock	Retained Earnings	Revenue	Expense
$     68,500.00							$ 68,500.00
$ (42,800.00)	$ 42,800.00
$     (2,700.00)		$     2,700.00
$     15,000.00				$      15,000.00
					$       780.00					$     780.00
$        (600.00)								$ (600.00)
			$       8,000.00						$    8,000.00
		$       (225.00)								$    225.00
						$ 4,280.00				$ 4,280.00
				$      (5,400.00)					$    5,400.00
					$    2,230.00					$ 2,230.00
$     37,400.00	$ 42,800.00	$     2,475.00	$       8,000.00	$        9,600.00	$    3,010.00	$ 4,280.00	$ 68,500.00	$ (600.00)	$ 13,400.00	$ 7,515.00

Adjusted Trial Balance
Cash	$ 37,400.00
Equipment	$ 42,800.00
Prepaid Insurance	$    2,475.00
Accounts Receivable	$    8,000.00
Utilities Expense	$        780.00
Insurance Expense	$        225.00
Depreciation	$    4,280.00
Salary expense	$    2,230.00
Dividends	$        600.00
Service revenue		$   13,400.00
Unearned revenue		$     9,600.00
Accumulated Depreciation-Equipment		$     4,280.00
Salaries payable		$     2,230.00
Common Stock		$   68,500.00
Accrued Expense		$         780.00
Total	$ 98,790.00	$   98,790.00