P2-1A
Frontier Park was started on April 1 by C. J. Mendez and associates. The following selected events and transactions occurred during April.
Apr. 1 Stockholders invested $40,000 cash in the business in exchange for common stock.
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 Declared and paid a $1,000 cash dividend.
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; Account Payable; Unearned Admission Revenue; Common stock; Dividends; Admission Revenue; Advertising Expense; and Salaries Expense.
Instructions
Journalize the April transactions. (If there is no transaction, enter No entry as the description and 0 for the amount.)
Date Description/Account Debit Credit
Apr. 1
(Issued shares of stock for cash.)
Apr. 4
(Purchased land for cash.)
Apr. 8
(Incurred advertising expense on account.)
Apr. 11
(Paid salaries.)
Apr. 12
(Hired park manager.)
Apr. 13
(Paid for one-year insurance policy.)
Apr. 17
(Declared and paid cash dividend.)
Apr. 20
(Received cash for services provided.)
Apr. 25
(Received cash for future services.)
Apr. 30
(Received cash for services provided.)
Apr. 30
(Paid creditor on account.)
Link to Text 1Link to Text 2
Apr. 1 Cash $40,000.00
Capital $40,000.00
Apr. 4 Land $30,000.00
Cash $30,000.00
Apr. 8 Advertising $1,800.00
Accounts Payable $1,800.00
Apr. 11 Salaries $1,800.00
Cash $1,800.00
Apr. 13 Prepaid Insurance $1,500.00
Cash $1,500.00
Apr. 17 Drawing $1,000.00
Cash $1,000.00
Apr. 20 Unearned Admission Revenue $5,700.00
Cash $5,700.00
Apr. 25 Admission Revenue $2,500.00
Cash $2,500.00
Apr. 30 Unearned Admission Revenue $8,900.00
Cash $8,900.00
Apr. 30 Accounts Payable $900.00
Cash $900.00
apr. 12 no entry
no entry 0
april 20-the cash will be debited and unearned admission revenue will be credited right?
arpil 20 how's it unearned revenue?
because in that transaction mendez received a cash so cash will increase, from the rule when cash increase it goes to debit.
many many thank you.for your solution.
Apr. 12 ??
To journalize the April transactions, we need to analyze each transaction and determine the accounts that are affected by it. Let's go through each transaction one by one:
1. April 1: Issued shares of stock for cash.
- Debit: Cash ($40,000)
- Credit: Common stock ($40,000)
2. April 4: Purchased land for cash.
- Debit: Land ($30,000)
- Credit: Cash ($30,000)
3. April 8: Incurred advertising expense on account.
- Debit: Advertising Expense ($1,800)
- Credit: Accounts Payable ($1,800)
4. April 11: Paid salaries.
- Debit: Salaries Expense ($1,500)
- Credit: Cash ($1,500)
5. April 12: Hired park manager.
- No journal entry is required as the hiring is effective from May 1, not April.
6. April 13: Paid for one-year insurance policy.
- Debit: Prepaid Insurance ($1,500)
- Credit: Cash ($1,500)
7. April 17: Declared and paid cash dividend.
- Debit: Dividends ($1,000)
- Credit: Cash ($1,000)
8. April 20: Received cash for services provided.
- Debit: Cash ($5,700)
- Credit: Unearned Admission Revenue ($5,700)
9. April 25: Received cash for future services.
- Debit: Cash ($2,500) [100 coupon books x $25 each]
- Credit: Unearned Admission Revenue ($2,500)
10. April 30: Received cash for services provided.
- Debit: Cash ($8,900)
- Credit: Unearned Admission Revenue ($8,900)
11. April 30: Paid creditor on account.
- Debit: Accounts Payable ($900)
- Credit: Cash ($900)
Based on the analysis above, the journal entries for each transaction will be as follows:
Date Description/Account Debit Credit
Apr. 1
Issued shares of stock for cash. $40,000
Common stock $40,000
Apr. 4
Purchased land for cash. $30,000
Land $30,000
Apr. 8
Incurred advertising expense on account. $1,800
Advertising Expense $1,800
Apr. 11
Paid salaries. $1,500
Cash $1,500
Apr. 12
Hired park manager. No entry
Apr. 13
Paid for one-year insurance policy. $1,500
Prepaid Insurance $1,500
Apr. 17
Declared and paid cash dividend. $1,000
Dividends $1,000
Apr. 20
Received cash for services provided. $5,700
Cash $5,700
Apr. 25
Received cash for future services. $2,500
Cash $2,500
Apr. 30
Received cash for services provided. $8,900
Cash $8,900
Apr. 30
Paid creditor on account. $900
Accounts Payable $900
These are the journal entries for the April transactions listed in the question.