Frontier park was started on April 1 by M. Preston. The following selected event

Question

Frontier park was started on April 1 by M. Preston. The following selected events and transactions occurred during April

Apr 1- Preston invested $35,000 cash in the business

Apr 4- Purchased land costing $27,000 for cash

Apr 8- Incurred adverstising expense of $1,800 on account

Apr 11- Paid salaries to employees $1,500

Apr 12- Hired park manger at a salary of $4,000 per month, effective May 1st

Apr 13- Paid $1,650 cash for one year insurance policy

Apr 17- Withdrew $1,000 cash for personal use

Apr 20 - Received $6,800 in cash for admission fees

Apr 25- Sold 100 coupon books for $25 each. Each boo contains 10 coupons that entitle the holder to one admission to the park

Apr 30- Received $8,900 in cash admission fees

Apr 30- Paid $900 on balance owed for advertising incurred on April 8

Frontier Park uses the following accounts: Cash, Prepaid Insurance, Land, Accts Payable, Unearned Service Revenue, Owners Capital, Owner's drawings, Service Revenue, Advertising Expense, and Salries and Wages Expense

Instructions- Journalize the April transactions

Explanation / Answer

Apr-01 Cash dr 35,000 Capital 35,000 (being invested in business) Apr-04 Land dr 27000 Cash 27000 (being land purchased) Apr-08 Advertisement Exp 1800 Cash 1800 (being exp incurred on advertisement) Apr-11 Salaries 1500 Cash 1500 (being salaries paid in cash) Apr-12 No entry Apr-13 Prepaid Insurance 1650 Cash 1650 (being insurance is for one year) Apr-17 Cash 1000 Drawings 1000 (being cash withdraw) Apr-20 Cash 6800 Service Revenue 6800 (being cash received ) Apr-25 Cash 2500 Unearned Service Revenue 2500 (being cash received ) Apr-30 Cash 8900 Service Revenue 8900 (being cash received ) Apr-30 Accounts Payable 900 Cash 900 (being cash paid)

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