Question

Grouper’s Miniature Golf and Driving Range Inc. was opened on March 1 by Bob Dean. These selected events and transactions occurred during March.

Mar. 1		Stockholders invested $62,500 cash in the business in exchange for common stock of the corporation.
3		Purchased Snead’s Golf Land for $43,700 cash. The price consists of land $24,900, building $9,770, and equipment $9,030. (Record this in a single entry.)
5		Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,860 cash.
6		Paid cash $4,850 for a 1-year insurance policy.
10		Purchased golf clubs and other equipment for $4,950 from Tahoe Company, payable in 30 days.
18		Received golf fees of $2,400 in cash from customers for golf services performed.
19		Sold 130 coupon books for $25 each in cash. Each book contains 10 coupons that enable the holder to play one round of miniature golf or to hit one bucket of golf balls. (Hint: The revenue should not be recognized until the customers use the coupons.)
25		Paid a $560 cash dividend.
30		Paid salaries of $860.
30		Paid Tahoe Company in full for equipment purchased on March 10.
31		Received $800 in cash from customers for golf services performed.

Answer 1

Date	Account Titles	Debit	Credit
Mar 1	Cash	62500
	Common stock		62500
Mar 3	Land	24900
	Buildings	9770
	Equipment	9030
	Cash		43700
Mar 5	Advertising expense	1860
	Cash		1860
Mar 6	Prepaid insurance	4850
	Cash		4850
Mar 10	Equipment	4950
	Accounts payable		4950
Mar 18	Cash	2400
	Service revenue		2400
Mar 19	Cash	3250		=130*25
	Unearned service revenue		3250
Mar 25	Dividends	560
	Cash		560
Mar 30	Salaries and wages expense	860
	Cash		860
Mar 30	Accounts payable	4950
	Cash		4950
Mar 31	Cash	800
	Service revenue		800