✔ Journal Entries – Exercises
Rabbit Miniature Golf Inc was opened on February 1 by Michael Rabbit. The following selected events and transaction occurred during February.
Feb. 1 Invested $60,000 cash in the business in exchange for ordinary shares.
2 Purchased Nadine Karo land for $40,000. The price consists of land $15,000; building $20,000 and Equipment $5,000. (Make one compound entry).
4 Paying advertising expenses of $10,000.
7 Paid Cash $1,500 for a one year insurance police.
10 Purchased Golf equipment for $3,000 from Ketut Sport, Payable in 30 days.
18 received golf fees of $2,800 in cash.
23 Declared and paid a $1,000 cash dividend.
25 paid wages of $700
28 Paid Ketut Sport in full.
28 Received $1,000 of fees in cash.
Intructions
Journalize the February Transactions. (Provide explanations for the journal entries)
Answer :
Date | Description | Debet | Credit |
Feb 1 | Cash | $60,000 | |
Share Capital - Ordinary | 60,000 | ||
2 | Land | 15,000 | |
Building | 20,000 | ||
Equipment | 5,000 | ||
Cash | 40,000 | ||
4 | Advertising Expense | 10,000 | |
Cash | 10,000 | ||
7 | Prepaid Insurance | 1,500 | |
Cash | 1,5000 | ||
10 | Equipment | 3,000 | |
Account Payable | 3,000 | ||
18 | Cash | 2,800 | |
Service Revenue | 2,800 | ||
23 | Dividends | 1,000 | |
Cash | 1,000 | ||
25 | Wages Expanse | 700 | |
Cash | 700 | ||
28 | Account payable | 3,000 | |
Cash | 3,000 | ||
28 | Cash | 1,000 | |
Service Revenue | 1,000 |
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