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.