Bucket Club Miniature Golf and Driving Range was opened on May 1. The following events and transactions are for May:
May 1 Amin Mawani, the owner, invested $73,800 cash in the business.
2 Purchased Lee's Golf Land for $251,900. The price consists of land $108,500, building $84,300, and equipment $59,100. Paid $60,300 cash and signed a note payable for the balance.
4 Purchased golf clubs and other equipment for $17,000 from Woods Company on account.
5 Hired a golf pro to teach lessons at the golf range at a rate of $40 per hour.
6 Paid $2,580 cash for a one-year insurance policy.
15 Collected $1,830 of golf fees earned in cash from customers.
19 Paid Woods Company $5,480 for the items purchased on May 4.
20 Billed a customer, Deer Fern Inc., $1,410 for golf fees earned. Deer Fern Inc. paid $350 and agreed to pay the remaining amount owing in 10 days.
30 Received $1,060 from Deer Fern Inc. for the May 20 transaction.
31 Collected $3,100 cash from customers for golf fees earned.
31 Paid salaries of $2,220.
31 Paid $710 of interest on the note payable.
31 Paid Amin Mawani $1,540 for his personal use.
The company's chart of accounts includes the following accounts: Cash; Accounts Receivable; Prepaid Insurance; Land; Buildings; Equipment; Accounts Payable; Notes Payable; A. Mawani, Capital; A. Mawani, Drawings; Fees Earned; Salaries Expense; and Interest Expense.
Instructions
Journalize the May transactions.
TAKING IT FURTHER
After Amin has reviewed the journal entries, he complains that they don't seem to be very useful. Explain to Amin the purpose of the journal entries.