Question

Feng Disc Golf Course was opened on March 1.

The following selected events and transactions occurred during March (amounts in thousands).

Mar. 1 Lee Feng invested￥20,000 cash in the business in exchange for ordinary shares.

     3 Purchased Rainbow Golf Land for￥15,000 cash. The price consists of land ￥12,000, building ￥2,000, and equipment ￥1,000. (Make one compound entry.)

5 Paid advertising expenses of ￥900

6 Paid cash ￥600 for a one-year insurance policy.

10 Purchased golf discs and other equipment for ￥1,050 from Wang Company payable in 30 days.

18 Received ￥1,100 in cash for golf fees (Feng records golf fees as service revenue).

19 Sold 150 coupon books for ￥10 each. Each book contains 4 coupons that enable the holder to play one round of disc golf.

25 Declared and paid a ￥800 cash dividend

30 Paid salaries of ￥250

30 Paid Wang Company in full

31 Received ￥2,700 cash for golf fees

Feng Disc Golf uses the following accounts: Cash, Prepaid Insurance, Land, Building, Equipment, Accounts payable, Unearned Service Revenue, Share Capital-Ordinary, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense.

Instructions

Journalize the March transactions

Answer 1

Solution

General journal

Feng Disc Golf Course

S.no	Account titles	Debit $	Credit$
1	cash Dr	¥20000
	To share capital- ordinary		¥20000
	(To record the cash invested in the business in exchange for ordinary shares.)
2	Land. Dr	¥12000
	Building. Dr	¥2000
	Equipment. Dr	¥1000
	To cash		¥15000
	( Being land, building, and equipment is purchased)
3	Advertising expenses. Dr	¥900
	To cash		¥900
	( To record the advertising expenses)
4	Prepaid Insurance. Dr	¥600
	To cash		¥600
	( To record cash paid for insurance)
5	Equipment. Dr	¥1050
	To accounts payable		¥1050
	( To record the purchase of equipment on credit)
6	Cash. Dr	¥1100
	To Service revenue		¥1100
	( To record the cash received from golf fee)
7	cash. Dr	¥1500
	To unearned service revenue		¥1500
	( To record the sale of 150 coupon books at ¥10 each)
8	Dividends. Dr	¥800
	To cash		¥800
	( To record the payment of Dividends)
9	Salaries expense Dr	¥250
	To cash		¥250
	( To record the payment of salaries)
10	Account payable. Dr	¥1050
	To cash		¥1050
	( To record the payment made for the equipment purchased from Wang company)
11	Cash Dr	¥2700
	To service revenue		¥2700
	( To record the cash received from golf fees)