PART 2: Journal Entries

Create appropriate journal entries for each of the following business events. Fill in the yellow cells as appropriate.

Cash.

Prepaid insurance.

Land.

Buildings.

Equipment.

Accounts payable.

Unearned service revenue.

Owner's capital.

Owner's drawings.

Service revenue.

Advertising expense.

Salaries and wages expense.

1-May

Invested $20,000 cash in the golf course business.

3-May

Purchased Hampstead Golf Land for $15,000 cash. The price includes land $12,000, shed $2,000, and equipment $1,000.

5-May

Paid advertising expenses of $700.

6-May

Paid cash $600 for a one-year insurance policy.

10-May

Purchased golf discs and other equipment for $1,050 from Discs Are Us, payable in 30 days.

18-May

Received $1,100 in cash for golf fees earned (service revenue).

19-May

Sold 150 coupon books for $10 each. Each book contains four coupons that enable the holder to play one round of disc golf.

25-May

Withdrew $800 cash for personal use.

30-May

Pay $250 as salaries for part-time employees.

30-May

Paid Discs Are Us the full amount due.

31-May

Received $2,100 cash for fees earned.

Note: The first two rows below are an example for cash.

Date

Accounts

Debit

Credit

1-May

Cash

$20,000

Owner's Capital

$20,000

3-May

Land

$15,000

$15,000