M. Preston

[logistic_guy]

\(\displaystyle \text{Frontier Park}\) was started on April \(\displaystyle 1\) by \(\displaystyle \text{M. Preston}\). The following selected events and transactions occurred during April.

Apr.
\(\displaystyle \bold{1}\) Preston invested \(\displaystyle \$ 35,000\) cash in the business.
\(\displaystyle \bold{4}\) Purchased land costing \(\displaystyle \$ 27,000\) for cash.
\(\displaystyle \bold{8}\) Incurred advertising expense of \(\displaystyle \$ 1,800\) on account.
\(\displaystyle \bold{11}\) Paid salaries to employees \(\displaystyle \$ 1,500\).
\(\displaystyle \bold{12}\) Hired park manager at a salary of \(\displaystyle \$ 4,000\) per month, effective May \(\displaystyle 1\).
\(\displaystyle \bold{13}\) Paid \(\displaystyle \$ 1,650\) cash for a one-year insurance policy.
\(\displaystyle \bold{17}\) Withdrew \(\displaystyle \$ 1,000\) cash for personal use.
\(\displaystyle \bold{20}\) Received \(\displaystyle \$ 6,800\) in cash for admission fees.
\(\displaystyle \bold{25}\) Sold 100 coupon books for \(\displaystyle \$ 25\) each. Each book contains \(\displaystyle 10\) coupons that entitle the holder to one admission to the park.
\(\displaystyle \bold{30}\) Received \(\displaystyle \$ 8,900\) in cash admission fees.
\(\displaystyle \bold{30}\) Paid \(\displaystyle \$ 900\) on balance owed for advertising incurred on April \(\displaystyle 8\).

Instructions
Journalize the April transactions.

 

[logistic_guy]

\(\displaystyle \bold{1}\) Preston invested \(\displaystyle \$ 35,000\) cash in the business.

1​	Account​	Debit​	Credit​
	Cash​	35,000​	​
	Owner's Capital​	​	35,000​

 

[logistic_guy]

\(\displaystyle \bold{4}\) Purchased land costing \(\displaystyle \$ 27,000\) for cash.

4​	Account​	Debit​	Credit​
	Land​	27,000​	​
	Cash​	​	27,000​

 

[logistic_guy]

\(\displaystyle \bold{8}\) Incurred advertising expense of \(\displaystyle \$ 1,800\) on account.

8​	Account​	Debit​	Credit​
	Advertising Expense​	1,800​	​
	Accounts Payable​	​	1,800​

 

[logistic_guy]

\(\displaystyle \bold{11}\) Paid salaries to employees \(\displaystyle \$ 1,500\).

11​	Account​	Debit​	Credit​
	Salaries and Wages Expense​	1,500​	​
	Cash​	​	1,500​

 

[logistic_guy]

\(\displaystyle \bold{12}\) Hired park manager at a salary of \(\displaystyle \$ 4,000\) per month, effective May \(\displaystyle 1\).

No journal entry is required.

 

[logistic_guy]

\(\displaystyle \bold{13}\) Paid \(\displaystyle \$ 1,650\) cash for a one-year insurance policy.

13​	Account​	Debit​	Credit​
	Prepaid Insurance​	1,650​	​
	Cash​	​	1,650​

 

[logistic_guy]

\(\displaystyle \bold{17}\) Withdrew \(\displaystyle \$ 1,000\) cash for personal use.

17​	Account​	Debit​	Credit​
	Owner's Drawings​	1,000​	​
	Cash​	​	1,000​

 

[logistic_guy]

\(\displaystyle \bold{20}\) Received \(\displaystyle \$ 6,800\) in cash for admission fees.

20​	Account​	Debit​	Credit​
	Cash​	6,800​	​
	Service Revenue​	​	6,800​

 

[logistic_guy]

\(\displaystyle \bold{25}\) Sold 100 coupon books for \(\displaystyle \$ 25\) each. Each book contains \(\displaystyle 10\) coupons that entitle the holder to one admission to the park.

25​	Account​	Debit​	Credit​
	Cash​	2,500​	​
	Unearned Service Revenue​	​	2,500​

 

[logistic_guy]

\(\displaystyle \bold{30}\) Received \(\displaystyle \$ 8,900\) in cash admission fees.

30​	Account​	Debit​	Credit​
	Cash​	8,900​	​
	Service Revenue​	​	8,900​

 

[logistic_guy]

\(\displaystyle \bold{30}\) Paid \(\displaystyle \$ 900\) on balance owed for advertising incurred on April \(\displaystyle 8\).

30​	Account​	Debit​	Credit​
	Accounts Payable​	900​	​
	Cash​	​	900​