Chapter 2 - P2-1ACorrect. Frontier Park was started on...

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Unformatted text preview: P2-1ACorrect. Frontier Park was started on April 1 by C. J. Mendez.The following selected events and transactions occurred during April.Apr. 1 Mendez invested $40,000 cash in the business.4 Purchased land costing $30,000 for cash.8 Incurred advertising expense of $1,800 on account.11 Paid salaries to employees $1,500.12 Hired park manager at a salary of $4,000 per month, effective May 1.13 Paid $1,500 cash for a one-year insurance policy.17 Withdrew $1,000 cash for personal use.20 Received $5,700 in cash for admission fees.25 Sold 100 coupon books for $25 each. Each book contains 10 coupons that entitle the holder to one admission to the park.30 Received $8,900 in cash admission fees.30 Paid $900 on balance owed for advertising incurred on April 8.Mendez uses the following accounts: Cash; Prepaid Insurance; Land; Buildings, Equipment; Account Payable; Unearned Admission Revenue; C.J. Mendez Capital; C.J. Mendez Drawing; Admission Revenue; Advertising Expenses; and Salaries Expense. InstructionsJournalize the April transactions. (If there is no transaction, then enter No Entry as the description and 0 for the amount.)DateDescription/AccountDebitCreditApr. 1Cash40000 C.J. Mendez, Capital40000 (Owner's investment of cash in business.)Apr. 4Land30000 Cash30000...
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This note was uploaded on 11/15/2010 for the course ACCT acct105 taught by Professor Kruc during the Fall '10 term at Bucks Community College.

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Chapter 2 - P2-1ACorrect. Frontier Park was started on...

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