PROBLEMS: SET C
EZpar Miniature Golf and Driving Range was opened on March 1 by Arnold Nicholas.
The following selected events and transactions occurred during March:
Invested $50,000 cash in the business.
Purchased Tee’s Golf Land for $38,000 cash. The price consists of land $23,000, build-
ing $9,000, and equipment $6,000. (Make one compound entry.)
Advertised the opening of the driving range and miniature golf course, paying adver-
tising expenses of $1,600.
Paid cash $1,480 for a one-year insurance policy.
Purchased golf clubs and other equipment for $2,600 from Woods Company payable in
Received $800 in cash for golf fees earned.
Sold 100 coupon books for $15 each. Each book contains 10 coupons that enable the
holder to play one round of miniature golf or to hit one bucket of golf balls.
Withdrew $2,000 cash for personal use.
Paid salaries of $600.
Paid Woods Company in full.
Received $500 cash for fees earned.
Arnold Nicholas uses the following accounts: Cash; Prepaid Insurance; Land; Buildings;
Equipment; Accounts Payable; Unearned Revenue; Arnold Nicholas, Capital; Arnold Nicholas,
Drawing; Golf Revenue;Advertising Expense; and Salaries Expense.
Journalize the March transactions.
Jessica Alba is a licensed architect. During the first month of the operation of her busi-
ness, the following events and transactions occurred.
Invested $30,000 cash.
Hired a secretary-receptionist at a salary of $500 per week payable monthly.
Paid office rent for the month $800.
Purchased architectural supplies on account from Angel Company $1,500.
Completed blueprints on a carport and billed client $1,200 for services.
Received $500 cash advance from D. Ellington for the design of a new home.