P3-4B Beefeaters RV Park was started on April 1 by Sarah Rhodes. These selected events and transactions occurred during April. Apr. Stockholders invested $100,000 cash in the business in exchange for com- mon stock, 4. Purchased land costing $250,000 for cash. Purchased advertising in local newspaper for $1,200 on account. Paid salaries to employees $3,000. Hired park manager at a salary of $3,600 per month, effective May 1. 13 11 Paid $7,200 for a 1-year insurance policy. Paid $600 cash dividends. Received $6,000 in cash from customers for admission fees. Sold 100 coupon books for $90 each. Each book contains ten coupons that entitle the holder to one admission to the park. (Hint: The revenue should not be recognized until the coupons are used.) 30 20 25 Received $7,900 in cash from customers for admission fees. Paid $400 of the balance owed for the advertising purchased on account on April 8. 30 The company uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Service Revenue, Common Stock, Dividends, Service Revenue, Adver- tising Expense, and Salaries and Wages Expense. Instructions Journalize the April transactions, including explanations. (Note: Beefeaters RV Park records admission revenue as service revenue.) 寸8n2B783
P3-4B Beefeaters RV Park was started on April 1 by Sarah Rhodes. These selected events and transactions occurred during April. Apr. Stockholders invested $100,000 cash in the business in exchange for com- mon stock, 4. Purchased land costing $250,000 for cash. Purchased advertising in local newspaper for $1,200 on account. Paid salaries to employees $3,000. Hired park manager at a salary of $3,600 per month, effective May 1. 13 11 Paid $7,200 for a 1-year insurance policy. Paid $600 cash dividends. Received $6,000 in cash from customers for admission fees. Sold 100 coupon books for $90 each. Each book contains ten coupons that entitle the holder to one admission to the park. (Hint: The revenue should not be recognized until the coupons are used.) 30 20 25 Received $7,900 in cash from customers for admission fees. Paid $400 of the balance owed for the advertising purchased on account on April 8. 30 The company uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Service Revenue, Common Stock, Dividends, Service Revenue, Adver- tising Expense, and Salaries and Wages Expense. Instructions Journalize the April transactions, including explanations. (Note: Beefeaters RV Park records admission revenue as service revenue.) 寸8n2B783
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P3-4B Beefeaters RV Park was started on April 1 by Sarah Rhodes. These selected events
and transactions occurred during April.
Apr.
Stockholders invested $100,000 cash in the business in exchange for com-
mon stock,
4.
Purchased land costing $250,000 for cash.
Purchased advertising in local newspaper for $1,200 on account.
Paid salaries to employees $3,000.
Hired park manager at a salary of $3,600 per month, effective May 1.
13
11
Paid $7,200 for a 1-year insurance policy.
Paid $600 cash dividends.
Received $6,000 in cash from customers for admission fees.
Sold 100 coupon books for $90 each. Each book contains ten coupons that
entitle the holder to one admission to the park. (Hint: The revenue should
not be recognized until the coupons are used.)
30
20
25
Received $7,900 in cash from customers for admission fees.
Paid $400 of the balance owed for the advertising purchased on account on
April 8.
30
The company uses the following accounts: Cash, Prepaid Insurance, Land, Accounts
Payable, Unearned Service Revenue, Common Stock, Dividends, Service Revenue, Adver-
tising Expense, and Salaries and Wages Expense.
Instructions
Journalize the April transactions, including explanations. (Note: Beefeaters RV Park
records admission revenue as service revenue.)
寸8n2B783
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