Question

Great Games Company operates miniature golf courses throughout southern Arizona. On July 1, 2016, Great Games’ balance sheet showed (all dollar figures in thousands):

Cash $40 -- Accounts Payable $50 -- Credit Card Receivables 25 -- Accruals Payable 0 -- Golf Supplies 35 -- Long-term Notes Payable 0 -- Office Equipment (net) 45 -- Common Stock 65 -- Retained Earnings 30

Draft the Journal Entry

During July the following events occurred to Great Games:
a) Collected $20 cash on credit card receivables due from customers.
b) Paid $27 on accounts payable that had come due.
c) Deposited in the bank $30 of rental fees earned from customers.
d) Customer rental fees of $64 were accepted on credit cards; credit card receipts were
submitted to Trusty Bank. Cash collection from bank is expected in August.
e) Bought $2 of golf supplies (balls) on an account to be paid in August.
f) Paid employee wages of $15.
g) Received a $3 electricity bill in July; this bill will be paid in August.
h) Paid rent for July, $9.
i) Bought office equipment costing $20. Paid $5 now and signed a note payable for
the remainder, due on December 30, 2018.
j) The note payable incurred $1 of interest during July; interest is to be paid in December.
k) Signed a contract for $7 for billboard advertising to be shown during August.
Payment will not be made until after the advertisements have been displayed.
l) Trusty Bank notified Great Games that it had collected $33 of credit card receipts.
m) Declared a cash dividend of $5 to shareholders who founded the company. Payment
will be made in December, 2016.
n) Counted $24 of golf supplies remaining at the end of July.
o) Great Games received $30 for additional stock issued to friends of the founders.
p) Estimated income taxes of $21 for July 2016. These will be paid next March 2017.

Answer 1

Journal Entry
($ in thousands)
Date	Particulars	Dr. Amt.	Cr. Amt.
a.	Cash	20.00
	Credit Card Receivable		20.00
	(record the cash received)
b.	Accounts Payable	27.00
	Cash		27.00
	(Record the amount paid)
c.	Cash	30.00
	Rent Revenue		30.00
	(record the rental fees received)
d.	Credit Card Receivable	64.00
	Rent Revenue		64.00
	(Record the rent revenue received through credit cards)
e.	Golf Supplies	2.00
	Accounts Payable		2.00
	(Record the golf supplies on account)
f.	Salaries & Wages	15.00
	Cash		15.00
	(record the wages paid)
g.	Utilities Expense	3.00
	Utilities Payable		3.00
	(record the electricity expense)
h.	Rent Expense	9.00
	Cash		9.00
	(record the rent paid)
i.	Office Equipment	20.00
	Cash		5.00
	Notes Payable		25.00
	(record the equipment purchased)
j.	Interest Expense	1.00
	Interest Payable		1.00
	(Record the interest due on note)
k.	No Entry
l.	Cash	33.00
	Credit Card Receivable		33.00
	(record the cash received)
m.	Retained Earnings	5.00
	Cash Dividends Payable		5.00
	(Record the dividend payable)
n.	Golf Supplies Expense	13.00
	Golf Supplies		13.00
	(Record the golf supplies expense)
	Golf Supplies Expesnse = $35 + $2 - $24 = $13
o.	Cash	30.00
	Common Stock		30.00
	(record the commn stock issued)
p.	Income Tax Expense	21.00
	Income Tax Payable		21.00
	(Record the income tax expense)