Journalize the March transactions. Use only accounts from the company\'s chart o

Question

Journalize the March transactions. Use only accounts from the company's chart of accounts, which are cash, accounts receivable, prepaid insurance, equipment, accumulated depreciation-equipment, accounts payable, salaries payable, unearned service revenue, common stock, retained earnings, dividends, income summary, service revenue, salaries expense, utilities expense, insurance expense and depreciation expense. Omit journal entry descriptions.

Mar. 2 Stockholders invested $68,500 cash in the business in exchange for common stock of the corporation.

Mar. 3 Purchased equipement for $42,800 cash.

Mar. 6 Purchased a $2,700 1-year insurance policy on account.

Mar. 19 Sold 100 coupon books for $150 each in cash. Each book contains coupons that enable the holder to play one round of miniature golf or to hit one bucket of golf balls

Mar. 20 Received the month's utility bill for $780.

Mar. 25 Paid a $600 cash dividend.

Mar. 30 Performed golf services totaling $8,000 for customers on account.

31 1/12th of the insurance policy expired.

31 Equipment is depreciated at 1/10th of cost with no salvage value

31 36 coupon books were redeemed by customers during the month.

31 Accrued salaries are $2,230

[hint: totals = $101,490 for adjusted trial balance]

Explanation / Answer

Note 1 - Insurance Expense

Total Insurance premium for 12 months = $2,700

Insurance Premium for the month March = $2,700 ÷ 12 = $225

Note 2 - Depreciation Expense

Total Equipment cost = $42,800

Depreciation for month march = $42,800 ÷ 10 = $4,280

Date Accounts Titles and Explanation Debit Credit March 2 Cash a/c 68,500 Common Stock a/c $68,500 March 3 Equipment a/c $42,800 Cash a/c $42,800 March 6 Prepaid Insurance a/c $2,700 Cash a/c $2,700 March 19 Cash a/c [100 x $150] $15,000 Unearned Service revenue a/c $15,000 March 20 Utilities expense $780 Accounts payable a/c $780 March 25 Dividends a/c $600 Cash a/c $600 March 30 Accounts receivable a/c $8,000 Service revenue a/c $8,000 March 31 Insurance expense a/c [Note 1] $225 Prepaid Insuracne a/c $225 March 31 Depreciation expense [Note 2] $4,280 Accumulated depreciation-equipment $4,280 March 31 Unearned Service revenue a/c [36 x $150] $5,400 Service revenue $5,400 March 31 Salaries Expenses a/c $2,230 Salary payable a/c $2,230

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