Question

Transactions of a Company, Including Investment and Dividend Snyder Miniature Golf and Driving Range plc was opened on March 1 by Mickey Snyder. The following selected events and transactions occurred during March.

Mar. 1 Invested £60,000 cash in the business in exchange for ordinary shares.

3 Purchased Michelle Wie’s Golf Land for £58,000 cash. The price consists of land £30,000, building £22,000, and equipment £6,000. (Make one compound entry.)

5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of £1,600.

6 Paid cash £1,480 for a 1-year insurance policy.

10 Purchased golf equipment for £2,500 from Young Company, payable in 30 days.

18 Received golf fees of £1,200 in cash.

25 Declared and paid a £1,000 cash dividend.

30 Paid salaries and wages of £900.

30 Paid Young Company in full.

31 Received £750 of fees in cash.

31 Sale of Land £25,000 (that cost 10,000)

Snyder uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Share Capital—Ordinary, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense, Gain on sale of Land.

Instructions Journalize the March transactions. (Provide explanations for the journal entries.)

Answer 1

Date	Particulars	Debit	Credit
01-Mar	Cash A/c                                                Dr.	60000
	To Share Capital(Ordinary) A/c		60000
	(Cash invested in exchange of ordinary shares)
03-Mar	Land A/c                                               Dr.	30000
	Building A/c                                        Dr.	22000
	Equipment A/c                                  Dr.	6000
	To Cash A/c		58000
	(Land, building and equipment purchased for cash)
05-Mar	Advertising Expense A/c              Dr.	1600
	To Cash A/c		1600
	(Advertising Expense incurred)
06-Mar	Prepaid Insurance A/c                  Dr.	1480
	To Cash A/c		1480
	(Cash paid for insurance policy)
10-Mar	Equipment A/c                              Dr.	2500
	To Accounts Payable A/c		2500
	(Golf eqipment purchased form Young Company)
18-Mar	Cash A/c                                       Dr.	1200
	To Service Revenue A/c		1200
	(Golf fees received)
25-Mar	Dividend A/c                             Dr.	1000
	To Cash A/c		1000
	(Cash dividend paid)
30-Mar	Salaries and wages expenses A/c Dr.	900
	To Cash A/c		900
	( Salaries and wages paid)
30-Mar	Accounts Payable A/c               Dr.	2500
	To Cash A/c		2500
	(Paid Young Company in full)
31-Mar	Cash A/c                                      Dr.	750
	To Service Revenue A/c		750
	(Received fees in cash)
31-Mar	Cash A/c                                     Dr.	25000
	To Land A/c		10000
	To Gain on sale of land A/c		15000
	( Being Land costing 10000 sold for 25000)