accounting

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. 

4  Purchased land costing $27,000 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 $1,650 cash for a one-year insurance policy.

17  Withdrew $1,000 cash for personal use.

20  Received $6,800 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. 

Frontier Park uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Service Revenue, Owner’s Capital, Owner’s Drawings, Service Revenue, Advertising Expense, and Salaries and Wages Expense. 

Instructions 

Journalize the April transactions (not post).