Details
Friendley’s Miniature Golf and Driving Range Inc. was opened on March 1 by Dean Barley. These selected events and transactions occurred during March.
| Mar. 1 | Stockholders invested $50,000 cash in the business in exchange for common stock of the corporation. | |
| 3 | Purchased Arnie�s Golf Land for $38,000 cash. The price consists of land $23,000, building $9,000, and equipment $6,000. (Record this in a single entry.) | |
| 5 | Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,200 cash. | |
| 6 | Paid cash $2,400 for a 1-year insurance policy. | |
| 10 | Purchased golf clubs and other equipment for $5,500 from Golden Bear Company, payable in 30 days. | |
| 18 | Received golf fees of $1,600 in cash from customers for golf services performed. | |
| 19 | Sold 100 coupon books for $25 each in cash. Each book contains ten coupons that enable the holder to play one round of miniature golf or to hit one bucket of golf balls. (Hint: The revenue should not be recognized until the customers use the coupons.) | |
| 25 | Paid a $500 cash dividend. | |
| 30 | Paid salaries of $800. | |
| 30 | Paid Golden Bear Company in full for equipment purchased on March 10. | |
| 31 | Received $900 in cash from customers for golf services performed. |
Journalize the March transactions. Friendley’s records golf fees as service revenue.
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